BAS Group, a Nigerian investment firm with a diversified portfolio spanning healthcare, micro-insurance, and financial services, has acquired a majority stake in Lagos-based fintech company Zuvy Technologies. The all-cash transaction gives BAS over 50% ownership and full operational control of Zuvy, a startup known for providing short-term invoice-backed credit to small and medium-sized businesses. This acquisition marks a significant step in BAS Group’s ambition to address the $236 billion credit gap faced by Nigerian SMEs.
Unlocking the Potential of Invoice Discounting
Zuvy specializes in offering working capital to vendors that supply large corporations by advancing payments on verified invoices. This model allows small businesses to access credit without relying on traditional forms of collateral, which are often a barrier to financing. BAS Group sees this as a strategic fit within its finance division, particularly because invoice verification by large, reputable buyers significantly reduces lending risk.
A Natural Addition to BAS Group’s Financial Suite
BAS Group CEO Abdulateef Hussein described Zuvy as a complementary addition to the company's existing financial services portfolio, not a departure from their strategy. He emphasized that Zuvy’s platform would seamlessly integrate with BAS Finance Company, which already offers payroll lending, vehicle-backed loans, and collateralized SME credit. With this acquisition, BAS now adds a new category of credit that serves businesses previously excluded due to lack of collateral or lengthy approval cycles.
Building on Established Infrastructure
Zuvy’s lending infrastructure, which has supported over 1,500 businesses, will now be scaled using BAS Group’s capital and institutional relationships. The integration will be led by BAS Group’s COO Kayode Adnan, who also oversees lending operations within the company. Hussein noted that no layoffs are planned, and Zuvy’s technology and business development teams will remain intact under the BAS umbrella.
Zuvy’s Evolution from Direct Lending to Scalable Origination
Founded in 2021 by Angel Onuoha and Ahmad Shehu, Zuvy originally launched as a direct lender before transitioning to a loan origination model to achieve greater scale. This pivot allowed the startup to multiply its loan book tenfold, albeit at the expense of some control over the disbursed credit. Despite these trade-offs, Zuvy reached profitability before the acquisition and fully repaid the $4 million debt it raised during its 2023 funding round.
Founders Step Back, BAS Takes Over Operations
As part of the acquisition, all institutional investors in Zuvy have been bought out. The co-founders will retain minority stakes but are stepping away from daily operations, placing the company’s future firmly in BAS Group’s hands. According to Hussein, the long-standing relationship between BAS and Zuvy’s founders helped ensure a smooth transition and alignment of vision.
Targeting Untapped SME Credit Opportunities
BAS Group identified a key market segment that remains underserved: SMEs that lack real estate or traditional assets for collateral. The group believes that invoice discounting, backed by the credibility of large buyers like Dangote, Eat n’ Go, and Rite Foods, offers a viable alternative. Verified invoices serve as a trusted foundation for extending credit with reduced risk and quicker turnaround times.
Consolidating Lending and Insurance Offerings
In addition to credit, BAS Group plans to layer Zuvy’s services with its broader offerings in micro-insurance and banking, including health-maintenance plans and credit-life insurance. This consolidated approach provides small businesses with a comprehensive set of financial tools under one roof. The goal is to streamline financial access and reduce the friction that often limits SME growth.
With nearly a $1 million loan book and growing demand for flexible, tech-enabled credit solutions, BAS Group is well-positioned to make an impact in Nigeria’s SME sector. The acquisition of Zuvy not only enhances its lending capabilities but also aligns with its long-term strategy to close the credit gap and support the country’s economic engine. As Zuvy’s platform is integrated and scaled, BAS Group stands poised to offer inclusive and efficient financial services to more Nigerian businesses than ever before.
Source : Techcabal