Carbon, a Nigerian fintech startup, has announced the total acquisition of Vella Finance, a US-based fintech startup, through its parent company, One Credit Limited, in an undisclosed deal to redefine financial freedom for Africans.
In addition, the startup has simultaneously launched an AI-powered business banking platform aimed at pioneering the use of AI across all departments, from accounting and finance to human resources, operations, and engineering.
Confirming the acquisition deal, Mark Afolabi, co-founder and CEO of Vella Finance, said, “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.”
Founded by Mark Afolabi, Tolu Adedayo, Gabriel Ajenifuja, and Segun Fagbami in 2021, Vella Finance transitioned from cross-border payment to crypto transactions and SME banking. The fintech startup is now the business banking arm of Carbon. According to Chijioke Dozie, co-founder of Carbon, “[We] spearheaded the consumer finance revolution in Nigeria in 2016. Our goal was to give consumers unprecedented access to finance from their mobile devices.”
Dozie further explained, “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 have admired their innovation and understanding of 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.”
Gabriel Ajenifuja, co-founder and CTO of Vella Finance, stated that in the coming days, Vella Finance will be transitioning its business customers to Carbon Business, with individual customers having the option to upgrade to business accounts.
How the carbon business works
- AI-powered transaction analysis: Utilize advanced AI to gain deep insights into your financial transactions, enabling smarter decision-making and growth strategies.
- Competitive low-interest loans: Access loans with interest rates that challenge industry standards, offering financial relief and support for your business aspirations.
- Sub-accounts for Financial Organization: Easily manage your finances with sub-accounts that simplify reconciliation and accounting processes. You can create accounts for salaries, savings, working capital, and many more.
- Automated income splitting for financial planning: Set rules to allocate a percentage of funds to go into separate sub-accounts in an automated manner. You can rest easy knowing that your VAT, WHT, or savings for a new purchase are taking place every second of the day.
- Team-based account management (in development): Invite team members to collaborate on account management, fostering teamwork and efficiency in financial operations.
- Ease of integration and user-friendly interface: Seamlessly integrate the account into your existing business systems, ensuring a smooth transition and adoption.
“All Carbon Business customers will get access to our AI experience through webinars, newsletters, and how-to guides. In a time of limited talent and resources, AI is a superpower, and we are going to share everything we know,” said Ngozi Dozie, a co-founder of Carbon.
