Ayodeji Ayenuwa
Nigerian blockchain payments startup Bitmama has successfully acquired the fintech firm Payday, a deal valued at $30 million that includes an offer of $1 million in equity to Payday investors.
This move enables Bitmama, originally a crypto exchange, to integrate Payday’s established user base of 300,000 and stablecoin infrastructure into its cross-border payments product, Changera.
Changera, introduced in 2021, facilitates seamless cross-border payments and remittances, offering virtual and physical dollar cards across Nigeria, Ghana, and Kenya.
The strategic acquisition addresses challenges faced by Payday, including customer complaints about exchange rates and responsiveness issues.
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Bitmama’s CEO, Ruth Iselema, shared insights into the acquisition, stating, “Favour [CEO, PayDay] reached out to me because we’re building products beyond crypto; one of those products is Changera, and it made sense to me.”
The transaction also dispels earlier speculations, confirming Bitmama as the successful acquirer over potential interest from Moniepoint. “The deal is a work in progress. If the deal goes through, the result will be a strong team with much more efficiency,” stated Favour Ori, the founder and CEO of Payday.
Details about Payday’s brand and leadership post-acquisition are still undisclosed. However, Bitmama is committed to improving customer service and technological aspects.
This acquisition aligns with the broader industry trend, reflecting strategic consolidations and acquisitions within the fintech sector to overcome challenges and expand operations.
Bitmama’s post-acquisition roadmap includes launching a solution in Q1 2024 to enhance foreign exchange transactions for African businesses, further contributing to the evolving fintech ecosystem.
SOURCE: TechCabal
Techrectory with Agency Report.
