Nigerian business banking startup, Brass has secured a capital infusion from a consortium of investors.
The startup faced criticism from customers due to delays in processing withdrawals after the bank couldn’t meet up with customer demands, TechCabal reported.
The deal, comprising a combination of debt and equity, was finalized last week, although the exact funding amount remains undisclosed, as per the sources.
The fresh injection of capital will offer vital working capital to the startup, especially after it placed employees on furlough on March 4.
Brass informed its customers via email on Tuesday that the issues have been resolved, and transactions are now operating smoothly once more.
Subsequently, numerous Brass customers reported on X that they had begun receiving pending withdrawals.
Withdrawal delays were first noticed by users in October 2023. Sola Akindolu, Brass’s CEO, informed TechCabal that a major liquidity partner withdrew from a partnership, putting significant strain on the startup.
According to TechCabal, this partner was a prominent Nigerian fintech that had previously provided uncollateralized loans to various startups until mid-2023, when it ceased this service due to liquidity challenges.
Facing liquidity issues, Brass explored an acquisition by Flutterwave, although the deal ultimately fell through, as reported by TechCabal.
Furthermore, Brass sought a capital injection from larger startups like Moniepoint, which declined to provide funding to Brass.
