Carbon, the Pan-African fintech startup, has successfully acquired Vella Finance, a Nigerian fintech startup focused on SME banking. The undisclosed acquisition, executed through Carbon’s parent company, One Credit Limited, positions Vella Finance as Carbon’s business banking product, now rebranded as “Carbon Business”.
Vella Finance, founded in December 2021 by Mark Afolabi (CEO), Tolu Adedayo (COO), Gabriel Ajenifuja (CTO), and Segun Fagbami (CPO), initially started as a cross-border payment platform for businesses. However, the company swiftly pivoted its focus to crypto transactions and SME banking, culminating in its recent acquisition by Carbon.
The strategic significance of this acquisition lies in Carbon’s intent to leverage Vella Finance’s AI-powered transaction analysis feature, which provides business customers with actionable insights based on their financial transactions. Tolu Adedayo emphasised the strong relationship between the two companies, noting that Carbon’s investment company had been involved in Vella Finance’s pre-seed raise.
Carbon Co-founder, Chijioke Dozie, underscored the innovative spirit of Vella Finance, expressing admiration for their understanding of market needs. He stated, “They had built an SME platform that we believe is unrivaled in the market, and given our aspirations, the deal was a no-brainer.”
The acquisition marks Carbon’s foray into AI-driven business banking, aligning with the evolving needs of businesses in Nigeria. Carbon Business, the rebranded entity, aims to provide businesses with an advanced platform offering AI-driven insights, low-cost accessible loans, and the integration of AI models to address diverse business challenges.
Mark Afolabi highlighted the significance of the partnership in providing businesses a platform equipped with AI-driven capabilities to navigate today’s challenging economic landscape. The collaboration positions Carbon Business as a key player in supporting businesses with transaction insights, financial products, and AI-driven solutions.
Co-founder and CEO of Carbon, Ngozi Dozie, emphasised the company’s commitment not only to leveraging AI internally but also to sharing these insights broadly. Carbon’s strategic move aligns with the growing trend of Nigerian startups engaging in acquisitions, signifying the ecosystem’s maturation and readiness for strategic collaborations.
As businesses in Nigeria face unprecedented challenges, the acquisition aims to equip them with cutting-edge technology and financial tools to thrive in a dynamic and competitive landscape. Carbon Business, with its AI-powered transaction analysis, low-interest loans, sub-account features, and collaborative account management, sets the stage for a new era of innovative business banking solutions in the region.
