After Being Shopped For Months, Payday May Have Finally Found A Buyer
Talks of acquisition between Bitmama Inc., a blockchain payments platform, and Payday, a virtual card service provider, have been on the front burner in recent months, WT has learned, heralding a dynamic shift within Nigeria’s fintech landscape
In line with information first reported by the publications Techpoint and TechCabal, sources suggest Bitmama, led by CEO Ruth Iselema, is in discussions to acquire Payday, following prior indications that Payday was open to a buyout, including a scoop gathered by WT in March which touted a potential acquisition by Moniepoint, the lead investor in Payday’s seed round.
Isalema and Favour Ori, the founders on both sides of the latest deal-in-progress say talks are in progress but details are not finalised as of yet. However, talks between Bitmama and Payday signal a significant move for both entities in the evolving fintech ecosystem.
Bitmama’s interest in Payday aligns with its broader goal of expanding beyond crypto-focused services to global offerings, including remittance solutions under its product Changera. The acquisition of Payday would provide Bitmama with an established customer base and infrastructure, notably avoiding the need for the ground-up development of Changera.
The potential deal, revealed to be valued at USD 1 M in equity offered by Bitmama at a USD 30 M valuation per sources privy to the talks, aims to integrate Payday’s expertise in virtual card services and global accounts into Bitmama’s suite of offerings.
However, these negotiations follow a history of acquisition talks involving Payday. Earlier links to Moniepoint, another significant player in Nigeria’s fintech sphere, hinted at an acquisition agreement. Still, those talks didn’t pan out and a deal never materialised, allowing Bitmama to step into the acquisition scene. Moreover, Payday had been shopped for months after its initial acquisition hopes proved unsuccessful, WT gathered from sources close to the company.
Ori, the Founder and CEO of Payday, acknowledged the ongoing discussions, emphasizing the potential synergies between Payday’s strengths and Bitmama’s evolving portfolio, reports TechCabal. The integration could potentially lead to a more robust and efficient team, although concrete details remain undisclosed as both parties have refrained from commenting officially.
The proposed acquisition comes amidst Payday’s journey from a remittance-focused platform to a neobank offering global accounts and virtual cards, serving as a conduit for international payments among African users. Despite Payday’s growth in customer base and revenue, past challenges, including operational issues and leadership controversies, have muddied its trajectory.
For Payday’s over 300,000 customers, the potential acquisition could mean continuity in services under Bitmama’s umbrella, potentially offering expanded service offerings and enhanced reliability through a stablecoin infrastructure.
If the acquisition proceeds, it is anticipated to reshape Bitmama’s roadmap significantly, Techpoint points out, potentially launching a new solution aimed at improving FX transactions for African businesses in Q1 2024.
While these discussions remain in progress and official announcements are awaited, the speculated acquisition signals a transformative phase for both Bitmama and Payday, potentially charting new directions in Nigeria’s evolving fintech landscape.
