Bitmama acquires Nigerian fintech Payday in all-stock deal
Bitmama Inc., a blockchain payments platform, has acquired Payday, a virtual card service provider. This follows closely on the heels of Payday's disclosure of a $3 million seed round just nine months ago and the confirmation of its exploration of sale options three months ago.
Through Bitmama's cross-border payments solution, Changera, this acquisition signifies a significant departure from earlier speculations, particularly those suggesting a potential acquisition by the primary investor, Moniepoint. Changera is poised to strengthen its position in blockchain payment by taking over Payday's entire customer base.
Launched in 2021, Changera is now in the process of assimilating key personnel from various departments of Payday, including marketing, customer service, and engineering. The integration is already in progress, with several Payday employees transitioning to roles within Changera.
Key Takeaways
Bitmama's acquisition of Payday aligns with a broader trend of strategic consolidation in the fintech sector. This move follows in the footsteps of other notable acquisitions, such as Risevest's acquisition of Chaka in September 2023. The prevalence of such consolidations signifies a growing inclination among fintech companies to forge strategic alliances and make acquisitions as a means to navigate market challenges and scale their operations. With the acquisition complete, Bitmama is gearing up for an ambitious journey outlined in its roadmap. At the forefront of this roadmap is the development of a groundbreaking solution designed to enhance foreign exchange (FX) transactions for African businesses. Set to be unveiled in the first quarter of 2024, this innovative solution aims to fill a crucial gap in the market by facilitating smoother and more efficient B2B cross-border financial interactions. This strategic move positions Bitmama to play a pivotal role in addressing the evolving needs of the financial landscape in Africa.
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