Months of behind-the-scenes negotiations have culminated in a groundbreaking acquisition that promises to reshape the fintech landscape in Nigeria.

Risevest, the innovative fintech startup, has officially acquired digital trading pioneer Chaka in a deal that founders Tosin Osinbodu and Eke Urum describe as both strategic and exciting.

A Transformative Partnership

Speaking on the acquisition, Tosin Osinbodu, the founder of Chaka, and Eke Urum, the visionary mind behind Risevest, confirmed the successful conclusion of the acquisition on a Tuesday morning.

Osinbodu expressed his enthusiasm for the future, saying, “We’re excited, especially from the perspective of people; high level and strategically, this deal makes sense.”

He further added, “I’m excited about how Chaka’s product will evolve and how we’re going to learn from the Risevest team.”

While financial details of the transaction remain confidential, both companies have reassured that Chaka and Risevest will continue to operate as separate entities.

According to Eke, “Chaka’s ownership and cap table will get updated, but everything else remains; the team stays the same.”

Both companies plan to collaborate closely to enhance their respective product roadmaps, reflecting a commitment to growth and innovation.

A Perfect Match

Insiders suggest that this acquisition was a natural fit due to the complementary licenses held by both Chaka and Risevest. Although neither founder offered comment on this particular aspect, it provides a glimpse into the strategic rationale behind the merger.

Chaka, founded in 2019, positions itself as an “investment passport” for users. Through the Chaka app, users can invest in shares of publicly traded companies in Nigeria and the United States with investments as low as $2. Also, fractional shares are available, making investing more accessible than ever.

Chaka’s journey has been marked by challenges, including a temporary setback in December 2020 when the Security and Exchange Commission (SEC) suspended its operations in Nigeria. The SEC’s ban stemmed from a perceived lack of licensing. However, through dialogue with regulators, Chaka became the first trading startup to secure a digital sub-broker license in March 2021.

The Road to Merger

Eke Urum, the founder of Risevest, shared with TechCabal the fascinating story of how this groundbreaking merger came to fruition. It all began with a mutual investor who floated the idea earlier in the year. Informal discussions commenced in March 2023, with both founders quickly finding common ground and even joking about their hypothetical collaboration as co-founders in an alternate reality.

Eke stated, “The first conversation we had about this was: this is where Chaka is trying to go; I wonder if this could happen. Investors on both sides have also always been aware. To my knowledge, all investors bought in when we spoke to them about this deal.”

Tosin Osinbodu concluded, “Knowing how much we have put in, the investors understand that we’re committed to it. I think the investors are really glad about this outcome and what the future holds.”

A New Era in Nigerian Fintech

The Risevest-Chaka merger not only marks a significant moment in the history of Nigerian fintech but also signals a commitment to growth, innovation, and expanding access to investment opportunities for Nigerians.

With their shared vision and diverse strengths, these two fintech powerhouses are set to navigate the evolving financial landscape together, potentially setting new industry standards and inspiring collaboration across the Nigerian tech ecosystem.

Dana Motors Limited, the exclusive distributor of Kia in Nigeria, is leading a groundbreaking charge to revolutionize the transportation landscape in the country.

In response to the escalating fuel prices and mounting vehicle-related expenses, Dana Motors Limited has unveiled ambitious plans to introduce Compressed Natural Gas (CNG) vehicles into the Nigerian market.

This strategic move underscores Dana Motors Limited’s unwavering dedication to innovation and sustainability within Nigeria’s automotive sector, effectively tackling the pressing need for more economical transportation options.

Having previously set a precedent by launching Nigeria’s inaugural electric vehicle, the Kia Soul, Dana Motors Limited is now poised to introduce an array of high-efficiency CNG-powered vehicles.

Francis Ogboro, Vice Chairman of the Group, passionately stated, “At Dana Motors Limited, our ultimate objective is to provide Nigerians with innovative, environmentally-friendly, and budget-conscious automotive solutions. The introduction of CNG-powered vehicles seamlessly aligns with our overarching vision to elevate the quality of life for all Nigerians, while simultaneously mitigating the surging costs associated with vehicle ownership.”

Further amplifying this commitment, Olu Tikolo, Vice President of Dana Motors Limited, emphasized, “Recognizing the transformative potential of CNG vehicles for public transportation, we are steadfast in our dedication to making transit more accessible and affordable. Through this visionary initiative, we aspire to elevate the overall quality of life for all Nigerians.”

The forthcoming launch of CNG-powered vehicles by Dana Motors Limited is poised to make substantial contributions to Nigeria’s emission reduction efforts, foster sustainability, and establish a more economical transportation system. Dana Motors Limited is not just leading but reshaping the trajectory of the Nigerian automotive industry, forging a greener, more cost-effective future for all.

Nigerian autotech startup Fixit45 has successfully secured $1.9 million in equity and working capital to fuel its ambitious expansion plans into East Africa.

The funding round, spearheaded by Launch Africa Ventures, witnessed significant participation from notable investors, including Soumobroto Ganguly and Dave Delucia, alongside a diverse group of angel investors.

In a press release issued on Wednesday, Fixit45 underscored the significance of this capital infusion as a substantial stride towards broadening its footprint and influence within Africa’s thriving automotive aftermarket industry.

The company revealed that these funds have been earmarked to fuel its strategic expansion initiatives, with a particular emphasis on fortifying its automotive repair business.

Fixit45 also shared its unwavering commitment to enhancing its spare parts distribution capabilities through its online-to-offline platform, xparts.africa. With a keen eye on the East African market, Fixit45 has set its sights on Kenya and Uganda.

Co-founded by visionaries Chioma Ahueze-Okochukwu, Goodluck Ikporo, and Pankaj Bohhra, Fixit45 offers a unique platform that empowers car owners to seamlessly connect and engage with a vast network of aftermarket stakeholders.

This extensive network encompasses automobile service providers, specialized technical teams, spare parts suppliers, and end-consumers.

Pankaj Bohhra, one of the co-founders of Fixit45, expressed his enthusiasm, stating, “This funding represents a pivotal moment for Fixit45. We are profoundly grateful to our investors for their faith in our vision and our unwavering commitment to revolutionizing the African automotive aftermarket sector. With this capital infusion, we are well-positioned to advance towards our expansion objectives.”

Fixit45’s strategic move into East Africa holds the promise of ushering in transformative developments in the automotive industry across the region.

As the company intensifies its efforts, the future of automotive repair and spare parts distribution in East Africa appears poised for a remarkable evolution. Stay tuned for more exciting updates as Fixit45 continues to make waves in the autotech sector.