Today: Jun 14, 2024

Nigerian fintech GladeFinance in exciting talks for acquisition deal.

5 months ago

TLDR

Nigerian fintech startup GladeFinance is reportedly in talks to be acquired by two companies, one Nigerian and one German. GladeFinance offers business banking services and expanded its scope to include global payments after a rebrand in 2023. The potential acquisition may involve the acquirer taking control of GladeFinance’s customer base and technology. The startup recently laid off 35% of its staff, and there have been salary cuts as the company sought to extend its financial runway.

Key points:

  • Nigerian fintech startup GladeFinance is in talks to be acquired by a Nigerian and a German fintech company.
  • The acquisition could see the acquirer take control of GladeFinance’s customer base and technology.
  • GladeFinance recently laid off 35% of its staff and implemented salary cuts to extend its financial runway.

Nigerian fintech startup GladeFinance is reportedly in talks to be acquired by two companies, one Nigerian and one German, according to a source close to the matter. The acquisition, if it goes through, could see the acquirer taking control of GladeFinance’s customer base and technology. GladeFinance, which was founded in 2020 and raised an undisclosed amount for its pre-seed round in 2022, provides business banking services and expanded its scope to include global payments after a rebrand in 2023.

The potential acquisition comes after GladeFinance received acquisition offers in late 2023 aimed at extending the company’s longevity, according to CEO Victor Liyi. However, Liyi declined to disclose further details about the offers. GladeFinance has previously raised funding from Techstars and was planning a seed round in 2023, but it did not materialize due to the funding winter.

In addition to the acquisition talks, GladeFinance recently laid off 35% of its staff, the second round of layoffs in the past year. The startup currently employs 17 people, down from 33 before the first round of cuts. Victor Liyi stated that the layoffs were unrelated to the acquisition plans and were made to ensure the company’s long-term viability.

The potential acquisition of GladeFinance is indicative of the current state of African tech, as startups face a global venture capital slowdown and increased pressure to demonstrate profitability. This has resulted in layoffs and shutdowns becoming more common, and experts predict a rise in M&A activities as a result. Other Nigerian startups, such as Risevest and Bitmama, have already undergone acquisitions, and the trend is expected to continue in 2024.