Introduction: A Strategic Merger
Nigerian identity verification startup Prembly has announced a merger with Kenyan background check company Peleza, forming the Prembly Group. Although specific financial details of the transaction were not disclosed, the merger aims to strengthen their market presence across East Africa and beyond.
Expanding Capabilities and Services
Prembly is known for its identity verification, security, and compliance solutions, while Peleza specializes in conducting thorough background checks for businesses. Peleza has established key partnerships in East Africa with prominent companies such as Uber, Bolt, and FedEx. With this merger, the newly formed Prembly Group aims to leverage Peleza’s industry expertise to enhance its service offerings and expand its footprint in the East African market.
A History of Collaboration
Over the past 18 months, Peleza has been utilizing Prembly’s infrastructure to support its operations. This merger is seen as a natural extension of their longstanding partnership. “This merger serves as an extension of that collaboration and our longstanding partnership, providing an opportunity to expand service offerings to customers across various markets and globally,” said Marita Mutemi, co-founder of Peleza.
Leadership and Organizational Changes
With the merger, Lanre Ogungbe, co-founder and CEO of Prembly, has been appointed as the CEO of the Prembly Group. Marita Mutemi, the founder and CEO of Peleza, will take on the roles of CFO of Prembly Group and CEO of Prembly East Africa. “Other executives from Peleza have been reassigned and retained their leadership roles, ensuring continuity and stability,” Mutemi added.
Workforce Integration
The merger brings together a combined team of approximately 100 employees. However, due to role duplication, around ten employees will be let go, with severance packages provided to them. This restructuring is aimed at streamlining operations and optimizing the workforce for better efficiency.
Leveraging Brand Equity
The decision to name the new entity Prembly Group was a strategic move to capitalize on Prembly’s established brand equity and market presence, especially its global recognition in compliance and digital security solutions. “The decision to name the entity Prembly Group is borne out of a mutual agreement to leverage the brand equity and established market presence of Prembly, especially given its global recognition in compliance and digital security solutions,” Ogungbe explained.
Technological Integration and Future Plans
Looking ahead, the Prembly Group plans to integrate the KYC/B technology platforms of both companies. This integration aims to create a more robust and comprehensive solution for their clients. Founded in 2015, Peleza has not disclosed any venture capital funding, while Prembly, founded in 2021, raised a $2.8 million seed round in 2022, backed by MaC Venture Capital and Soma Capital.
