Digital financial services provider, "Carbon", has completed the acquisition of SME-focused Nigerian fintech, Vella Finance.

The two companies announced the completion of the deal via a statement on Wednesday. Vella Finance was acquired through its parent company One Credit Limited, alongside the simultaneous launch of a groundbreaking AI-powered business banking platform.

According to the statement, the acquisition marks a significant leap forward in Carbon’s mission to empower small and medium-sized enterprises (SMEs) with advanced, accessible financial services that leverage the latest in artificial intelligence. With the acquisition, the co-founder and CTO of Vella Finance, Gabriel Ajenifuja, said the company will in the coming days transition its business customers to Carbon Business and offer individual customers the option to upgrade to business accounts.

What they are saying

Commenting on the deal, co-founder of Carbon, Chijioke Dozie, said:

“Carbon spearheaded the consumer finance revolution in Nigeria in 2016. Our goal was to give consumers unprecedented access to finance from their mobile devices. Since then we have provided some loans to SMEs but not in a manner that meets our standards or the customers’ expectations.

“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 unrivaled in the market and given our aspirations, the deal was a no-brainer.”

On his part, Carbon’s co-founder and CEO, Ngozi Dozie, emphasizes the company’s commitment to not just leveraging AI internally but also sharing these insights broadly.

The -founder and CEO of Vella Finance, Mark Afolabi, also has these to say about the acquisition:

“This is exciting news for businesses and we are thrilled to join forces with Carbon. These are trying times for businesses in Nigeria and by joining forces, we can provide businesses with a platform that provides AI-driven insights into their transactions, low-cost accessible loans, and the power of AI models built into the platform to help with any business challenge.”

What the acquisition means

For Vella Finance, the ownership change will not change its commitment to customers. The startup said the acquisition will allow it to reach more customers, develop cutting-edge financial products, and provide a more secure banking experience.

Carbon, on the other hand, is looking to leverage Vella Finance’s AI-powered transaction analysis that helps business customers gain actionable insights based on their transactions.