Kelvin Bowoto
Brass, a Nigerian fintech firm that provides business banking services to small business owners, has attributed ongoing withdrawal delays to financial issues and an expanding customer base.
“The funding freeze and the economic situation in Nigeria affect the abilities of companies like ours to support many customers after some time,” said Sola Akindolu, the company’s CEO.
While Brass raised $2 million in 2021, Akindolu acknowledged the significant costs of running a financial firm.
“You can say you want to disrupt banks; if you raise $1–2 million, you’ll need to raise $5–10 million in a few years.” “If it is past due and you have not paid, things will get complicated,” Akindolu said. “You need access to ridiculous capital.”
According to two sources, Brass approached Nomba as part of discussions about a fundraising effort. According to one high-ranking official, the company has also considered raising debt financing and intends to close funds within the next two weeks.
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“It is not unusual for fintechs to approach and support one another behind the scenes,” Brass said in response to inquiries about raising funds from Nomba. “We have been approached and have provided assistance, including to competitors. And you can generally confirm this. And, no, we did not approach Nomba for stock financing.
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Despite the general nature of these complaints—there have been social media calls out to the CEO—Akindolu maintains that only 80 businesses have encountered these delays. “Once escalated, the resolution does not take over 24 hours,” Akindolu alleged.
The company also claims that it is working diligently to remedy the issues.
Resolving customer complaints.
Brass opened a second Telegram channel in February to address user issues, and pictures revealed that, while consumer complaints were addressed, they remained unresolved for weeks.
The firm has changed the phone number for its customer service hotline multiple times without posting it on social media. It compelled customers to publish their complaints on X and Instagram, with at least a few people expressing their dissatisfaction with the company’s poor communication.
Akindolu denies that description.
“I am quite accessible. Customers even call me at my phone number to report their issues, and I respond as soon as possible,” Akindolu stated.
Staff cuts at Brass
On Monday morning, Akindolu announced in an X thread that Brass will lay off an unspecified number of staff to minimize costs. Employees affected will continue to receive “health insurance coverage and other benefits until we are able to bring them back in the following months,” Akindolu tweeted.
Techrectory with Agency Report.
