Carbon acquires Nigerian Fintech startup Vella Finance to now become Carbon Business. Nigerian digital bank known as Carbon has reportedly bought a Fintech startup for SMEs known as Vella Finance.
The acquisition is an undisclosed one and it will therefore see Vella Finance become Carbon Business, carbon’s very own business banking product. Carbon on the other hand is still on the lookout to leverage the AI-powered SME banking feature of Vella Finance that will help users to get actionable insights from financial transactions.
Carbon Acquires Vella Finance
Carbon, a financial services platform, has acquired Vella Finance, a two-year-old startup, through its parent company One Credit Limited. This acquisition aims to launch a groundbreaking AI-powered business banking platform.
According to a statement sent to Techpoint Africa, Tolu Adedayo, co-founder, and COO of Vella Finance, mentioned that some of the founders and team members of the startup have already joined Carbon. Additionally, Vella Finance’s 8,000 SME customers will be absorbed into Carbon Business in the coming days. Individual customers will also have the option to upgrade to business accounts.
Despite the ownership change, Vella Finance remains committed to its customers. The startup believes that the acquisition will enable it to reach more customers, develop advanced financial products, and provide a more secure banking experience.
Carbon’s Plans for Vella Finance
Carbon plans to leverage Vella Finance’s AI-powered transaction analysis capabilities, which help business customers gain actionable insights based on their transactions. This strategic move reflects Carbon’s commitment to innovation and enhancing its services to meet the evolving needs of its customers.
How the Acquisition Took Place
Tolu Adedayo, the COO of Vella Finance, spoke about the acquisition, highlighting the positive relationship between Vella Finance and Carbon. Adedayo mentioned that Carbon had an investment company that participated in Vella Finance’s pre-seed raise, indicating a prior connection between the two companies.
Chijioke Dozie, co-founder of Carbon, confirmed this relationship, expressing admiration for the Vella Finance team’s innovation and market understanding. He emphasized that both companies share a pioneering and innovative spirit, with Vella Finance having developed an unrivaled SME platform in the market.
Vella’s Finance Evolution Throughout the Years
Despite its evolution, Vella Finance initially started as a cross-border payment platform for businesses before pivoting into crypto transactions and SME banking. Now, with a focus on AI for business banking, Carbon sees potential in leveraging Vella Finance’s expertise as it launches Carbon Business.
What This Acquisition Means
This acquisition marks the beginning of a trend of acquisitions by Nigerian startups in 2024. While 2023 saw several acquisitions, such as Bitmama acquiring Payday and Chaka being acquired by Rise, the ecosystem is poised to witness even more acquisitions this year.
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