Carbon, a Nigerian financial services provider of Instant loans, Buy Now Pay Later & Savings, has acquired US-Based fintech firm Vella Finance, to redefine financial freedom for Africans.
The acquisition was executed through Carbon’s Parent company One Credit Limited, in an undisclosed fee.
Speaking on the acquisition, co-founder of Carbon, Chijioke Dozie said,
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“Carbon spearheaded the consumer finance revolution in Nigeria in 2016. Our goal was to give consumers unprecedented access to finance from their mobile devices. We have known the Vella finance team for some time and admired their innovation and understanding of the market needs.
“We saw in them the same innovative and pioneering spirit that ignited Carbon. They had built an SME platform that we believe is unrivalled in the market and given our aspirations, the deal was a no-brainer”.
Vella finance was founded by Mark Afolabi, alongside his co-founders Segun Fagbami, Tolu Adebayo and Gabriel Ajenifuja. The startup offered comprehensive banking and financial infrastructure for local and cross-border payments targeting SMEs in Africa.
The fintech startup later transitioned from cross-border payment to crypto transactions and SME banking. However, in October 2023, the startup informed users and subscribers that it would stop offering crypto related service and banking services at the same time, noting that it was not feasible, hence the decision to drop the former.
Also speaking on the acquisition of Vella Finance by Carbon, co-founder and CEO, Mark Afolabi stated that the acquisition is exciting news for the business.
In his words,
“These are trying times for businesses in Nigeria and joining forces, we can provide businesses a platform that provides AI-driven insights into their transactions, low-cost accessible loans and the power of AI model built into the platform to help with any business challenge”.
With the recent acquisition Vella Finance will transition its business customers to Carbon Business and offer individual customers the option to upgrade business accounts in the coming days.
All Carbon Business customers will get access to Carbon’s Al experience through webinars, newsletters and How-To-Guides. “In a time of limited talent, and resources, Al is a superpower and we are going to share everything we know,” said Ngozi Dozie, a co-founder of Carbon.
Carbon Microfinance Bank since launch, has grown to become a leading digital bank in Nigeria, specializing in consumer credit and banking services for consumers and SMEs. The company has also announced a simultaneous launch of an Al-powered business banking platform. The new solution will entirely cater to SME businesses and their owners.
Co-founder, Ngozi Dozie emphasized that this move demonstrates the company’s commitment to not only leverage Al internally but to share insights broadly. “At Carbon, we’re pioneering the use of Al across all departments, from accounting and finance to human resources, operations, and engineering”, he said.
In January 2021, the company launched Carbon Zero, which allows users to purchase items they want and pay in 4 instalments with no interest. Carbon has become one of Nigeria’s major BNPL players with this product, joining America’s Affirm and PayPal, Australia’s Afterpay, Europe’s Klarna, and East Africa’s M-Kopa.