Priya PatelTLDR:
Brass, a Nigerian business banking startup, has secured new funding from investors after facing criticism for delays in processing withdrawals. The capital injection, a mix of debt and equity, will provide working capital for the startup, which furloughed employees in March. The company’s struggles stemmed from a liquidity partner pulling out and failed acquisition talks with Flutterwave. Despite these challenges, funding from investors aims to improve service delivery and transactions are now working seamlessly for customers.
Brass, a Nigerian business banking startup, recently secured new funding from a group of investors after facing criticism from customers for delays in processing withdrawals. The deal, a combination of debt and equity, was finalized last week, providing much-needed working capital for the company. This funding comes after Brass furloughed employees in March due to liquidity issues.
The startup’s struggles began when a major liquidity partner pulled out of a partnership, leaving Brass under significant strain. Despite approaching other fintech companies like Flutterwave and Moniepoint for acquisition or funding, no deals materialized. However, behind-the-scenes collaborations and support from other Nigerian fintech leaders helped keep Brass afloat.
Customers have reported that transactions are now working seamlessly again since the new funding was secured. The ultimate goal of this investment is to improve service delivery and address the withdrawal delays that customers have been experiencing since October 2023.
