Fluidcoins, a Nigerian crypto payment gateway, has been acquired by Blockfinex for an undisclosed sum. TechCabal reports that the deal was confirmed by Danny Oyekan, Blockfinex's CEO, and facilitated by Blockfinex's parent company, Dan Holdings Limited.
Fluidcoins was founded in 2021 by Lanre Adenowo and provides a crypto payment infrastructure for African businesses. Per TechCabal, the startup had previously raised $150,000, but with the startup running out of cash, an acquisition was the next best option.
As part of the acquisition, the Fluidcoins team will stay on as part of Blockfinex. Oyekan also stated that the acquisition would help Blockfinex launch new products beginning with a wallets-as-a-service offering, BlockPay.
"This acquisition was driven by a decision to venture into Wallet as a service business and crypto payment processing and scale it across the world. The acquisition includes all Fluidcoins entities, including Flip and Fluidshops," Oyekan shared.
Some of Fluidcoin's products include a checkout function for businesses, a wallet-as-a-service product, and Earn, a service that allows users to earn interest on stablecoins.
While 2022 presented numerous challenges to startups raising funds globally, crypto startups were especially hard hit. Although funds invested in crypto startups increased year-on-year, much of that growth occurred in the first half of the year, with Pitchbook reporting a 75% drop in Q4 '22' compared to Q4 '21'
Since the sale was first reported, reports have emerged showing that some investors may not have been happy about the sale. More specifically, it was alleged that the sale went through without the knowledge of the investors. An investor who spoke anonymously stated that while the startup's investors were aware of its financial position, the decision to sell was taken by Adenowo without keeping investors in the loop.
However, Joe Kinvi, explained that the investors knew that the startup was mulling a sale. Still, this does not prove that they approved of the sale. While other startups were in the running to acquire Fluidcoins, it ultimately went with Blockfinex, a move which sees its investors walk away empty-handed.