A consortium led by Paystack, along with investors PiggyVest, Ventures Platform, and P1 Ventures, has acquired Nigerian business banking startup Brass. The acquisition comes after Brass faced significant liquidity issues and raised bridge financing to address working capital challenges. Ventures Platform played a crucial role in facilitating the acquisition discussions, emphasizing the need for experienced operators in the deal.

Key points include:

• Leadership Changes: Cofounders Sola Akindolu (CEO) and Emmanuel Okeke (CTO), along with Head of Product Tolulope Saba, will depart. A new leadership team will be announced soon.
• Employee Stability: All other Brass employees will retain their positions.
• Customer Impact: Brass’s services will continue without disruption, with promises of further product and service enhancements.
• Financial Struggles: Brass had been dealing with delayed customer withdrawals and liquidity concerns since October 2023, leading to rumors of a potential shutdown.
• Acquisition Motivation: Industry concerns about the potential ripple effects of Brass’s failure prompted strategic acquisition talks involving major fintech players like Moniepoint, Paystack, and Flutterwave.
• Debt Financing Efforts: Brass sought convertible debt financing of $300,000 to $500,000 during its financial difficulties, though the exact amount raised remains unclear.
• Liabilities and Financial Gaps: New owners will assume Brass's assets and liabilities, including an alleged ₦2 billion gap in the company’s balance sheet.

The consortium aims to inject new capital into Brass, positioning it to deliver a robust financial operations stack for African businesses.

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