BAS Group, a prominent Nigerian financial services conglomerate, has recently made a significant move by acquiring a majority stake in Zuvy, a local fintech startup specializing in invoice financing. This strategic acquisition has positioned BAS Group as the majority owner of Zuvy, with over 50% ownership, although the exact financial details of the transaction have not been disclosed.
Considering Zuvy’s previous funding round of $4.5 million, with only $580,000 in equity, the majority stake acquisition could be valued anywhere between $1.5 million to $3 million, taking into account the startup’s valuation growth and revenue multiples. With the completion of the deal, Adnan Kayode, the Chief Operating Officer of BAS Group, will assume the leadership role at Zuvy. It has been emphasized that Zuvy will continue to operate independently, with no plans for layoffs following the acquisition.
Founded in 2023 by Angel Onuoha, a former Google product manager, and Ahmed Shehu, Zuvy specializes in providing invoice financing solutions to businesses in sectors such as FMCG, healthcare, and supply chain. The startup has successfully financed invoices totaling over ₦1 billion for more than 1,500 small businesses over the past two years.
Earlier this year, BAS Group ventured into the lending sector by offering collateralized loans to small and medium-sized enterprises. The acquisition of Zuvy now enables the group to diversify its services into uncollateralized lending, expanding its service offerings and market reach.
Abdulateef Hussein, the Founder and CEO of BAS Group, expressed that the acquisition of Zuvy signifies more than just a business expansion. He stated, “This acquisition of Zuvy goes beyond simply expanding our investment portfolio — it represents a strategic alignment with our core mission of developing a comprehensive, technology-enabled financial ecosystem for Africa.”
Having closely monitored Zuvy’s performance over the years, BAS Group recognized the startup’s strong track record, particularly its low non-performing loan ratio, which stood out among its competitors. This, alongside the success of similar players like Vendorcredit, influenced BAS Group’s decision to acquire Zuvy.
In a notable development, Zuvy’s co-founders, Onuoha and Shehu, have transitioned away from their operational roles to focus on Avelis Health, a new healthtech venture aiming to assist Americans in identifying inflated medical bills and automating appeals. Avelis Health has already secured acceptance into Y Combinator. Despite their shift in focus, both founders will retain minority stakes in Zuvy, with none of the startup’s previous investors exiting the company.
Reflecting on the acquisition, Onuoha commented, “We take great pride in Zuvy’s accomplishments and the positive impact we’ve created for thousands of Nigerian enterprises.” He further added, “BAS Group represents the perfect partner to advance Zuvy’s growth trajectory while we focus our efforts on addressing critical healthcare challenges in the American market.”
The acquisition of Zuvy by BAS Group marks a significant milestone in the financial services landscape of Nigeria, showcasing the synergy between established players and innovative startups in driving growth and innovation in the industry.
