The Startup Changing Business Finance
Vella Finance was a Nigerian fintech startup created to make financial services easier and more accessible for small and medium-sized businesses across Africa.
The company was founded in 2021 by Mark Afolabi, Gabriel Ajenifuja, Tolu Adedayo and Segun Fagbami. Its goal was to use technology to simplify how businesses manage money, make payments and handle financial transactions.
Vella launched its beta product in September 2021, initially focusing on making payments and remittances easier for Africans, particularly businesses dealing with customers and partners across borders.
Over time, the startup expanded its financial services and positioned itself as a digital financial platform for businesses.
The Problem Behind the Idea
Vella Finance was built around a common problem facing African businesses: moving money can be expensive, slow and complicated.
Small businesses involved in international trade often face difficulties with foreign exchange, payment delays and limited access to suitable financial services.
Vella sought to address these challenges by providing businesses with tools for local and international payments. Its services included virtual accounts, payment links, cards and cross-border payment solutions.
The startup also introduced additional tools through its Vella 2.0 platform in 2022, with the aim of helping African businesses handle international transactions more easily.
Turning Finance Into a Business
Vella’s business model was centred on financial services and transactions rather than relying mainly on subscriptions.
The platform provided payment, collection and payout services, alongside cards, cross-border transactions and other business-focused financial products.
The company also explored services such as credit and financial management tools, giving it different opportunities to generate revenue.
However, detailed public figures showing how much revenue came from each product were not widely disclosed.
Vella’s Growth Journey
Vella gained recognition in Nigeria’s growing fintech sector and attracted investment from LoftyInc Capital in a 2022 pre-seed funding round. The amount raised was not publicly disclosed.
The startup reportedly built a customer base of about 8,000 small and medium-sized businesses before it was acquired by Carbon in 2024.
One major turning point came in 2023 when Vella announced plans to stop its cryptocurrency-related services and concentrate more on SME banking.
The move showed the company’s willingness to adjust its strategy as it looked for a more sustainable business direction.
In February 2024, Carbon acquired Vella Finance through its parent company, One Credit Limited. Although the financial details of the acquisition were not made public, Vella’s business customers were moved to Carbon Business.
The acquisition also gave Carbon access to Vella’s technology, team and experience in serving businesses.
The Roadblocks Along the Way
Like many fintech startups, Vella operated in a highly competitive financial technology market.
The company had to deal with changing regulations, customer acquisition challenges, competition from established banks and other fintech companies, as well as the difficulties associated with cross-border payments.
Its experience with cryptocurrency also demonstrated how quickly changes in regulation and market conditions can influence a startup’s strategy.
Rather than continuing with a model that was becoming less attractive, Vella shifted its focus towards SME banking.
Lessons From Vella’s Journey
Vella Finance’s journey offers important lessons for entrepreneurs building businesses in Africa.
The first is the importance of solving a clear and genuine problem. Vella focused on difficulties businesses faced when moving and managing money.
Another lesson is the need to remain flexible. The startup changed direction when it decided to move away from cryptocurrency and concentrate on SME financial services.
Entrepreneurs can also learn that growth is not only about raising money. Building a product that customers find useful and creating a business model that can survive changing market conditions are equally important.
Vella’s acquisition by Carbon ultimately showed that a startup can create value not only by becoming a large independent company but also by building technology, talent and products that can strengthen a bigger financial institution.
