Brass, a Nigerian business banking startup recently under fire for delayed withdrawals, has successfully secured a capital infusion from a consortium of investors, according to sources familiar with the deal, although the exact amount remains undisclosed.
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In response to mounting customer concerns, key players within Nigeria’s fintech ecosystem collaborated to support Brass, recognizing the value the platform offers to its users. “Brass is a valuable product with the potential to address critical needs,” stated one individual involved in the initial discussions.
Speaking on the investment, an anonymous investor highlighted that the primary objective is to enhance service delivery, emphasizing the importance of ensuring seamless operations for Brass users.
The capital injection is expected to bolster Brass’s working capital, particularly following the recent decision to furlough employees on March 4th.
In a recent communication with customers, Brass expressed resolution of the withdrawal issues, assuring that transactions are once again proceeding smoothly. Subsequently, several customers reported the receipt of pending withdrawals on X platform.
Despite the recent challenges, Brass has encountered hurdles since October 2023 when withdrawal delays were first noticed. CEO Sola Akindolu attributed these delays to the withdrawal of a significant liquidity partner, resulting in operational strain.
Although Brass explored potential acquisition talks with industry players like Flutterwave, these discussions did not culminate in a deal. Flutterwave clarified that there were no acquisition plans between the two startups.
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