Digital financial services provider, Carbon, has acquired Vella Finance, a Nigerian fintech company with a focus on small and medium-sized enterprises.
The announcement of the acquisition was made through an official statement on Wednesday.
However, it did not disclose the financial details of the transaction.
Carbon acquired two-year-old Vella Finance through its parent company, One Credit Limited.
The digital bank is aiming to leverage Vella Finance’s AI-powered SME banking feature that helps users get actionable insights from financial transactions.
The co-founder and COO of Vella Finance, Tolu Adedayo, revealed that several founders and team members from the startup have already joined Carbon following the acquisition.
This integration will extend to Vella Finance’s 8,000 SME customers, who will be transitioned to Carbon Business in the coming days, Adebayo said.
He added that individual customers will be provided with the choice to upgrade to business accounts as part of this development.
The co-founder of Carbon, Chijioke Dozie, said, “Carbon spearheaded the consumer finance revolution in Nigeria in 2016. Our goal was to give consumers unprecedented access to finance from their mobile devices. Since then we have provided some loans to SMEs but not in a manner that meets our standards or the customers’ expectations.
“We have known the Vella Finance team for some time and admired their innovation and understanding of the market needs. We saw in them the same innovative and pioneering spirit that ignited Carbon.
“They had built an SME platform that we believe is unrivaled in the market and given our aspirations, the deal was a no-brainer,” Dozie stated.
The co-founder and CEO of Vella Finance, Mark Afolabi, said,” This is exciting news for businesses and we are thrilled to join forces with Carbon. These are trying times for businesses in Nigeria and by joining forces.
“We can provide businesses with a platform that provides AI-driven insights into their transactions, low-cost accessible loans, and the power of AI models built into the platform to help with any business challenge,” he said.
Vella Finance clarified that the ownership change will not change its commitment to customers.
The startup said the acquisition will allow it to reach more customers, develop cutting-edge financial products, and provide a more secure banking experience.
Meanwhile, the co-founders of Carbon, Chijioke Dozie and Ngozi Dozie, are the sons of the erstwhile chairman of Diamond Bank and MTN Nigeria, Paschal Dozie.
Their elder brother, Uzoma Dozie, is the founder of a digital microfinance bank, Sparkle, after he left Diamond Bank as CEO.
The trio grew up in an environment where banking was all they knew.
