Nigerian fintech startup GladeFinance, backed by prestigious accelerator Techstars, is exploring potential acquisition by at least two companies, one Nigerian and one German, according to sources close to the matter. This development comes just three years after the company's launch and amidst a significant shift in the African tech landscape.
GladeFinance, formerly focused solely on providing business banking services in Nigeria, pivoted in 2023 to cater to a wider audience, offering payment services, expense management, multi-currency accounts, and working capital to businesses globally. Despite the challenging funding winter that saw its plans for a 2023 seed round fall through, the company boasts substantial growth, exceeding 6,000 customers and processing over ₦11 billion in transactions last year.
While CEO Victor Liyi confirmed receiving acquisition offers in late 2023, aimed at extending GladeFinance's lifespan, he declined to divulge specifics. The potential deal could see the acquirer gaining control of GladeFinance's established customer base and robust technology. However, uncertainties remain regarding the fate of existing investors and Liyi's post-acquisition role.
This potential acquisition aligns with the evolving realities of African tech. After a period of exuberant funding records, a global VC slowdown has impacted startups heavily. Layoffs and shutdowns have become commonplace, with experts predicting an increase in mergers and acquisitions (M&A) as a consequence. Examples include Risevest's acquisition of Chaka and Bitmama's acquisition of Payday in 2023, setting the stage for similar consolidation in 2024.
GladeFinance's situation also sheds light on the challenges many startups face. The company recently underwent two rounds of staff reductions, totaling 35% of its workforce, citing performance issues in the first instance and economic realities in the second. Liyi himself opted for a salary-free tenure for two years, underlining the commitment required to navigate these turbulent times.
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