The Nigerian digital bank Carbon has recently made a major move into the SME market with the acquisition of Vella Finance. The financial terms of the deal were not disclosed, but it is seen as a strategic move for Carbon as it looks to expand its offerings and cater to the needs of small and medium-sized enterprises in Nigeria and beyond.
Carbon, which was launched in 2016, has been focused on providing Nigerians with access to credit in the form of instant loans and buy now, pay later (BNPL) offerings. In addition to these lending services, Carbon also offers savings plans and a debit card, providing a range of financial products for its customers.
With the acquisition of Vella Finance, Carbon is making a concerted effort to tap into the SME market. Vella Finance is known for providing African firms with local and cross-border collection, payouts, and revenue management tools, making it a valuable asset for Carbon as it looks to expand its services to business customers.
As part of the acquisition, Vella Finance will transition its business customers to Carbon Business, the SME-focused platform that Carbon will be launching. Individual customers will also have the option to upgrade to Carbon Business, giving them access to a range of new features and services.
One of the key features of Carbon Business is its AI-powered transaction analysis, which will provide users with valuable insights into their business finances. In addition, Carbon Business users will have access to low-interest loans and other financial products designed to help SMEs grow and thrive in the Nigerian market.
Chijioke Dozie, co-founder of Carbon, spoke about the decision to acquire Vella Finance, saying, “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.”
The acquisition of Vella Finance represents a significant step for Carbon as it looks to expand its offerings and cater to the needs of SMEs in Nigeria. The move is also indicative of the growing importance of digital banking in the African market, as more and more businesses and individuals seek out digital financial services that are convenient, accessible, and tailored to their specific needs.
With the launch of Carbon Business, the digital bank is positioning itself as a key player in the SME space, offering a range of services and products that will help businesses succeed in the Nigerian market and beyond. As the digital banking landscape continues to evolve, it is clear that Carbon is determined to stay ahead of the curve and provide its customers with innovative financial solutions that meet their changing needs.
In conclusion, the acquisition of Vella Finance by Carbon represents a significant move for the Nigerian digital bank as it looks to expand its offerings and tap into the SME market. With the launch of Carbon Business, the bank is poised to provide business customers with a range of new services and products, including AI-powered transaction analysis and low-interest loans. This move is indicative of the growing importance of digital banking in the African market and demonstrates Carbon’s commitment to staying ahead of the curve and providing innovative financial solutions for its customers.
