In a significant move highlighting the growing convergence of traditional finance and financial technology in Nigeria, investment firm First Ally Capital has acquired a 60% equity stake in the Nigerian operations of digital credit platform Migo (formerly Mines.io). The deal sees the established financial group take control of a fintech that was once a high-flying, venture-backed international startup, signaling a new phase of consolidation and strategic partnerships in Africa’s largest economy.
The acquisition, completed after receiving approval from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC), solidifies a long-standing relationship between the two entities. First Ally Capital was an early seed investor in Migo, supporting its journey to product-market fit in the competitive Nigerian digital lending space.
Migo, which operates as a Credit-as-a-Service platform, enables companies to offer loans to their customers by leveraging AI-powered credit scoring. The company had previously raised a $20 million Series B round in 2019 to fuel its expansion in Nigeria and Brazil. However, the dynamics of its ownership structure have since evolved.
The seller in this transaction was Mathesis Analytics, a firm that had taken over 100% ownership of Migo’s Nigerian arm. This followed a 2024 merger where the global Migo team joined forces with Mathesis Analytics amidst a challenging funding climate for tech startups. This prior consolidation set the stage for the current acquisition by a major local financial institution.
“This acquisition reinforces our commitment to innovation and to expanding financial inclusion through responsible technology,” said Ebenezer Olufowose, Group Managing Director of First Ally Capital. Olufowose, a veteran of the Nigerian banking sector with leadership experience at Access Bank and as the current Chairman of First Bank of Nigeria, brings significant institutional weight to the deal. His statement underscores a strategic push by First Ally to embed technology deeper into its financial service offerings, which span investment banking, asset management, and microfinance.
For Mathesis Analytics, the sale represents a strategic realignment. “This partnership with First Ally marks an exciting new phase for Migo Nigeria and Mathesis Analytics,” commented Winston Osuchukwu, Chief Executive Officer of Mathesis. “The transaction will also allow Mathesis Analytics to focus on optimising our algorithms and models.”
The acquisition comes at a pivotal time for Nigeria’s fintech sector. The country’s digital lending market has been under increased scrutiny from regulators. The FCCPC has implemented a registration framework for digital money lenders to curb unethical practices and protect consumers. Migo’s formal integration into a well-established financial group like First Ally could provide it with a stronger compliance footing and greater access to stable capital.
This deal is also indicative of a broader trend of consolidation and strategic acquisitions in the Nigerian fintech space. As venture capital funding becomes more scarce, startups are increasingly looking to mergers and acquisitions as a path to survival and scale. A recent example is the acquisition of fintech and microfinance bank Bankly by investment firm C-One Ventures. In 2024, Nigerian digital banking startup Brass was also acquired by a consortium led by fintech heavyweight Paystack to alleviate liquidity concerns and avoid closure.
The First Ally-Migo transaction suggests a maturing of the ecosystem, where the agility and technological prowess of fintechs are being combined with the market depth, regulatory experience, and capital base of traditional financial players. This symbiotic relationship could be crucial for navigating the complexities of the Nigerian market and achieving sustainable growth in financial inclusion. While the financial terms of the deal were not disclosed, the strategic implications for the Nigerian fintech landscape are clear: the era of standalone, high-burn-rate startups may be giving way to a more integrated and, potentially, more resilient financial ecosystem.