Nigerian Crypto Firm Bitmama to Pay $1 Million for Startup That Raised $3 Million in February
The Nigerian crypto platform Bitmama is reportedly set to acquire the African remittances startup Payday for $1 million. Reports of Payday’s acquisition come almost a year after the startup raised $3 million in a funding round.
Bitmama’s Pivot From Crypto
The Nigerian crypto platform Bitmama is set to acquire the cross-border payment startup Payday for a reported sum of $1 million. The acquisition deal, which puts Payday’s value at $30 million, allows Bitmama to broaden its product offering to include cross-border remittances without having to start this service from scratch.
According to a Dec. 5 Techcabal report, Bitmama’s yet-to-be-consumated acquisition deal comes nearly a year after the previously high-flying Payday successfully raised $3 million in a funding round. Commenting on the deal, Favour Ori, founder and CEO of Payday, said:
“The deal is a work in progress. If the deal goes through, the result will be a strong team with much more efficiency.”
When the deal is finalized, Bitmama is expected to take over Payday’s customer deposits and the remittance firm’s liabilities.
Ruth Iselema, who founded Bitmama in 2019, explained how her platform’s pivot away from its crypto-only approach convinced Ori to approach. She also suggested that Bitmama’s desire to become a leading remittance service provider made the deal to buy Payday even more lucrative.
Meanwhile, Payday’s downfall may be linked to the founder’s extravagance and brash management style as well as the company’s failure to effectively deal with customer complaints, according to reports.
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