Afrigather GladeFinance, a Nigerian fintech startup backed by Techstars, is presently in discussions concerning a possible acquisition. These talks contain at the least two fintech firms, one Nigerian and one German, and will doubtlessly result in the startup being acquired, a mere three years after it started its operations.
In 2022, GladeFinance efficiently secured an undisclosed quantity for its pre-seed spherical and gained entry into Techstars Toronto. Plans for a seed spherical in 2023 have been in movement, however they didn’t materialize attributable to difficult funding situations.
Victor Liyi, the CEO of GladeFinance, confirmed the receipt of acquisition affords in late 2023, with the intention of extending the corporate’s longevity. Nevertheless, he declined to supply additional particulars concerning the affords.
Based in 2020 by a former Interswitch product supervisor, GladeFinance initially supplied enterprise banking providers in Nigeria. Nevertheless, in 2023, it underwent a rebrand and expanded its providers to assist companies worldwide with cost processing, expense administration, multi-currency accounts, and dealing capital. The corporate has skilled important progress, serving over 6,000 companies and processing greater than ₦11 billion in transactions within the final 12 months alone.
The potential acquisition could contain the acquirer gaining management of GladeFinance’s buyer base and expertise, however it’s nonetheless too early to verify. The destiny of GladeFinance’s present buyers and Victor Liyi’s function post-acquisition stays unsure.
In a associated improvement, the corporate not too long ago carried out a second spherical of layoffs, leading to a 35% discount in its workforce. Victor attributes the primary spherical of layoffs to efficiency points. The startup initially employed 33 folks, however following the newest cuts, it now has 17 workers. Victor emphasizes that these layoffs are unrelated to the acquisition plans, stating that powerful selections have been crucial for the corporate’s long-term viability.
GladeFinance additionally applied wage cuts as a part of its efforts to increase its monetary runway. Victor talked about that he didn’t draw a wage from the corporate for 2 years.
Opposite to stories claiming that the startup raised $450,000 in 2022, Liyi clarified that it acquired lower than $50,000 exterior its funding from Techstars, as some buyers failed to satisfy their commitments.
GladeFinance’s potential acquisition displays the present challenges going through African tech startups attributable to a slowdown in world enterprise capital. With layoffs and shutdowns changing into extra frequent, consultants anticipate an increase in M&A actions within the tech business. In 2023, there have been notable acquisitions, together with Risevest’s acquisition of native rival Chaka and Bitmama’s acquisition of Payday, and this pattern is anticipated to proceed into 2024.
