C-One Ventures Platform (C-One), a Lagos-based venture builder, has agreed to acquire the licences, technology, and selected assets of Bankly, a Nigerian microfinance bank and fintech startup known for serving the country’s informal economy. The deal comes as some Bankly customers report difficulties accessing their funds, raising concerns over the stability of the fintech’s operations.

In a joint statement issued on Monday, the companies confirmed the acquisition, which is pending regulatory approvals, including from the Central Bank of Nigeria (CBN). Bankly’s co-founder, Tomilola Majekodunmi, will transition into an advisory role to ensure continuity.

A Fintech Built for the Unbanked

Founded in 2018, Bankly digitized Nigeria’s traditional thrift savings systems — known as esusu or ajo — where informal groups pool cash offline. The startup expanded by deploying a network of agents, allowing customers to deposit and withdraw funds digitally. By 2021, Bankly had secured $2 million in seed funding from investors including Vault, Plug and Play Ventures, and Rising Tide Africa. This followed a USD 250,000 pre-seed round in 2019.

However, recent months have seen liquidity challenges, with customers complaining of delayed withdrawals and reduced service availability. Investigations by Launch Base Africa reveal that some users have been unable to access their funds for weeks, though neither Bankly nor C-One has publicly addressed these complaints in detail.

C-One, a venture studio with investments in education, healthcare, and financial services, framed the deal as a move to stabilize Bankly and protect customers. A C-One representative stated that the acquisition prioritizes resolving customer obligations and integrating Bankly’s technology into its broader portfolio.

“Restoring customer confidence and ensuring operational resilience are our immediate priorities,” the representative said. The transaction involves a “modest cash consideration,” with a focus on sustainable growth rather than a large upfront payout.

A Trend of Fintech Consolidation in Nigeria

This acquisition follows a broader trend of consolidation in Nigeria’s fintech sector, where struggling startups are being absorbed by larger players. In May 2024, SME-focused fintech Brass was acquired by a Paystack-led consortium including PiggyVest, Ventures Platform, and P1 Ventures.

Brass, which offered financial tools for small businesses, had faced operational challenges, including transaction delays and staff layoffs, before the takeover. Like Bankly, its acquisition was positioned as a means to stabilize operations and expand services under new ownership.

Such deals highlight the growing maturity — and turbulence — of Nigeria’s fintech ecosystem. While early-stage startups attract investment, sustaining growth amid economic volatility has proven difficult, leading to strategic acquisitions by more established players or rescuers.

The acquisition also indicates the fragility of fintechs targeting Nigeria’s underserved markets. Bankly had aimed to bank 2 million unbanked Nigerians by 2025, aligning with the CBN’s financial inclusion targets. However, liquidity constraints have hampered operations, mirroring challenges faced by other fintechs in high-cash, low-trust environments. Reports from the preceding year suggested Bankly was seeking to raise USD 4 million in a mix of equity and debt, though the outcome of this fundraising effort remains uncertain.

Majekodunmi acknowledged Bankly’s struggles but expressed optimism under C-One’s ownership. “With C-One’s backing, we can address recent challenges and expand our reach,” she said.

Customer Concerns Linger

Despite assurances, customers remain wary. Several users, speaking anonymously, told Launch Base Africa that withdrawal issues began weeks before the acquisition announcement. While C-One has pledged to resolve these problems, the lack of a detailed recovery plan has fueled skepticism.

Bankly’s trajectory reflects both the promise and perils of fintech in emerging markets. Its agent-based model initially showed strong growth, expanding from 2,000 to 15,000 agents. Yet, scaling financial access while maintaining liquidity has proven difficult.

If approved by regulators, C-One plans to merge Bankly’s operations with its existing ventures. The long-term success of the deal hinges on regaining customer trust and proving that the venture builder can navigate Nigeria’s volatile fintech landscape.

For now, stakeholders are watching closely — especially customers still waiting to reclaim their trapped funds.