Kenyan identity management startup, Peleza, and US-backed digital security platform, Prembly, have announced a merger to form the Prembly Group. The merger aims to leverage the combined strengths of both companies to create a leading player in the African identity verification and security landscape.

While the financial details of the transaction remain undisclosed, the strategic rationale behind the merger is clear. Prembly, known for its identity verification, security, and compliance solutions, will benefit from Peleza’s established presence and deep industry knowledge in the East African market. Peleza, on the other hand, will gain access to Prembly’s advanced infrastructure and global reach.

“This merger is a natural extension of our longstanding partnership,” stated Marita Mutemi, founder of Peleza and the newly appointed CFO of Prembly Group. “By combining our expertise and resources, we are well-positioned to expand our service offerings and reach a wider customer base.”

Lanre Ogungbe, co-founder and CEO of Prembly, echoed this sentiment, stating that the merger “significantly increases our options and value, positioning us as the most used provider across Pan-Africa.” Ogungbe will continue to serve as the CEO of the newly formed Prembly Group.

The merger brings together a team of approximately 100 employees. However, some redundancies have resulted in the unfortunate layoff of at least ten employees, who will receive severance packages.

Looking ahead, the Prembly Group has ambitious plans for the future. They intend to integrate the KYC/B technology platforms of both companies and leverage Prembly’s brand equity to establish themselves as a leader in the digital security and compliance space across Africa and beyond.

While Peleza has been in operation since 2015, it has not publicly disclosed any venture capital funding. Prembly, founded in 2021, raised a $2.8 million seed round in 2022 from investors including MaC Venture Capital and Soma Capital.

This merger marks a significant development in the African tech scene, signaling a growing trend of consolidation and collaboration among startups seeking to scale their operations and expand their reach across the continent.