- Nigerian crypto startup BitMama offers to acquire distressed fintech Payday for $1M in equity deal
- Acquisition would allow BitMama to fast track launch of new remittance service Changera using Payday’s infrastructure
- Come after Payday faced user complaints, employee discontent with founder Ori, and financial stability woes
LAGOS, Nigeria — BitMama, a Nigerian cryptocurrency trading platform, has offered struggling fintech startup Payday $1 million in equity acquisition deal that would expedite its moves into the global remittance space.
BitMama, led by CEO Ruth Iselema, wants to jumpstart a new international money transfer vertical called Changera. By taking over the infrastructure and user base of the distressed payments app Payday, BitMama aims to bypass significant upfront costs in a competitive market.
The prospective deal would also transition Payday’s customer assets and liabilities onto BitMama’s balance sheet as part of the arrangement to obtain Payday’s resources.
Discussions come just months after Payday was reportedly fielding buyout interest from several firms following user complaints, employee discontent with founder Favour Ori, and cash burn rate issues at the erstwhile rising fintech.
Payday and founder Ori once seemed poised for success with high-profile backing and partnerships. But the company faced headwinds like blocked customer accounts and news that Ori paid himself a hefty $15,000 monthly salary during harder times.
While BitMama started as a crypto exchange gateway, its remittance pivot could benefit from Payday’s readymade infrastructure. With Payday facing deep troubles, BitMama sees a bargain acquisition play to give its global money transfer ambitions key rocket fuel.
The prospective deal remains a work in progress. But joining forces with distressed Payday may give BitMama’s Changera product instant scale advantages to make up ground in Nigeria’s expanding remittance marketplace.