By Nigerian fintech startup Brass is preparing for a public relaunch in early 2025 after undergoing significant restructuring following its acquisition.
Brass, which provides banking services to small and medium-sized businesses in Nigeria, faced major operational challenges in 2023, with customers struggling to access their deposits. By mid-2024, withdrawals had been completely halted, leading to growing concerns about the company’s financial stability.
Paystack-Led Acquisition and Leadership Exit
Following the acquisition spearheaded by Paystack, Brass co-founders Sola Akindolu and Emmanuel Okeke exited the company without receiving any financial compensation. Instead, the new owners took on the burden of refinancing customer defaults that had severely impacted the startup’s liquidity.
To stabilize operations, Paystack initially seconded three employees to oversee Brass’s turnaround. However, all three declined to take on permanent roles, prompting the appointment of a new CEO to lead the restructuring efforts.
Operational Overhaul and Workforce Reduction
As part of the restructuring, existing employees were required to reapply for their positions, leading to layoffs. While both Paystack and PiggyVest participated in the acquisition, Paystack has taken a more hands-on role in the company’s transformation, leveraging its expertise in payments. PiggyVest maintains a board seat but has had less involvement in day-to-day operations.
Brass has since undergone a rebranding, emerging under the new identity of Copper Brass.
Since the acquisition, the company has implemented two rounds of layoffs, the most recent in December 2024. At the time of acquisition, Brass had over 60 employees, but the workforce has since been reduced to fewer than 20. The layoffs were deemed necessary to streamline operations, as many roles were considered redundant during the internal restructuring.
The company’s work culture has also shifted significantly. While Brass previously operated as a remote-first organization, employees are now required to work from the office more frequently. The smaller team size has led to increased workloads, with extended work hours, including holidays. Some employees resigned over these demands during the 2024 Christmas period, while others who did not comply were dismissed.
Path to Relaunch and Future Prospects
Brass is currently not onboarding new users as it focuses on improving its platform to better serve its existing customer base. However, it has not completely closed its doors to new users and is working on a rebranding strategy aimed at restoring trust and credibility in the market.
Initially scheduled for an October 2024 relaunch, the company pushed back its timeline in favor of a Q1 2025 public relaunch.
Prior to the acquisition, Brass had raised over $1.7 million from investors, including Acuity Ventures, Hustle Fund, and angel investors such as Paystack CTO Ezra Olubi and Flutterwave CEO Olugbenga Agboola. It remains unclear whether the company plans to raise additional funding in the near future.
Brass has yet to respond to requests for comment regarding its upcoming relaunch and future financial plans. However, under new leadership and a refined strategy, the company is positioning itself for a comeback in Nigeria’s fintech space.
Comments