#Business #Start-Ups

Nigerian Fintech Startup Carbon Acquires Vella Finance, Births Carbon Business

This strategic manoeuvre by Carbon, orchestrated through its parent company, One Credit Limited, marks a pivotal step towards unveiling an innovative AI-driven business.

In a significant move within Nigeria’s thriving fintech scene, Carbon has announced its acquisition of Vella Finance, a burgeoning startup with a two-year track record. This strategic manoeuvre by Carbon, orchestrated through its parent company, One Credit Limited, marks a pivotal step towards unveiling an innovative AI-driven business banking platform, poised to redefine financial services for small and medium-sized enterprises (SMEs).

According to insights shared with Techpoint Africa, Tolu Adedayo, Co-founder and COO of Vella Finance, disclosed that select members of the startup’s core team have seamlessly integrated into Carbon’s operations. Moreover, Vella Finance’s extensive roster of 8,000 SME clients will undergo a smooth transition to Carbon Business, while individual patrons will be presented with the option to elevate their accounts to business status.

Despite the change in ownership, Vella Finance remains resolute in its unwavering commitment to customer satisfaction. The acquisition is envisioned not only to broaden its market reach but also to catalyze innovation in financial product development, thereby fortifying banking security measures for its clientele.

On the flip side, Carbon stands to gain substantially from Vella Finance’s sophisticated AI-powered transaction analysis capabilities, empowering business clients with actionable insights derived from their financial interactions.

In discussing the acquisition, Tolu Adedayo underscored the longstanding rapport between Vella Finance and Carbon’s founders, citing Carbon’s pivotal role in Vella Finance’s early-stage funding rounds. Chijioke Dozie, Co-founder of Carbon, echoed this sentiment, lauding Vella Finance’s innovative SME platform as a driving force behind the acquisition decision.

The evolutionary trajectory of Vella Finance—from its origins as a cross-border payment facilitator to its current focus on crypto transactions and SME banking—underscores its adaptability and steadfast commitment to meet evolving market demands. With the advent of AI-driven business banking, Carbon aims to leverage Vella Finance’s expertise to enhance its recently launched Carbon Business platform.

This acquisition not only sets a precedent for Nigerian startups in 2024 but also follows a trend observed in 2023, characterized by notable acquisitions such as Bitmama’s acquisition of Payday and Chaka’s integration into Rise. As the fintech ecosystem continues to evolve, the potential for further consolidation and strategic partnerships remains ripe, signalling a promising trajectory for innovation and growth within Nigeria’s financial technology sector.

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