Merger Announcement: Powerhouse Formed as Prembly and Peleza Unite in Identity Management Sector
Prembly Group and Peleza Merge to Dominate African Identity Management
In a significant move for the African tech sector, Kenyan startup Peleza has merged with Y Combinator-backed Prembly to form the Prembly Group. This merger marks a new chapter in African identity management, with the merged entity poised to offer enhanced services and expand its reach across the continent and beyond.
Lanre Ogungbe, Prembly's co-founder, will lead as CEO of the Prembly Group, while Marita Mutemi, Peleza's founder, will serve as CFO for the Prembly Group and CEO of Prembly East Africa. The merger aims to leverage Peleza's industry knowledge to expand Prembly Group's East African operations and enhance customer service offerings across various markets.
The formation of the Prembly Group signals a new era in African identity management. Ogungbe envisions the Prembly Group becoming the most widely used provider across Pan-Africa and achieving leadership status in the identity management space. The merger represents a significant consolidation in the market, bringing together Peleza's established presence and industry partnerships with Prembly's innovative technology and recent funding success.
Prembly, founded in 2021, secured $2.8 million in seed funding in 2022, backed by MaC Venture Capital and Soma Capital. Peleza, founded in 2015, has a strong presence in East Africa, with partnerships with Uber, Bolt, and FedEx. The merger brings together a workforce of approximately 100 employees, with about ten staff members being let go with severance packages due to role duplications.
The Prembly Group will utilize Peleza's expertise in background checks alongside Prembly's prowess in identity verification, security, and compliance. Plans are underway to integrate the KYC/B technology platforms of both companies, creating a more robust and comprehensive suite of services for clients across various sectors. As the digital landscape continues to evolve, the Prembly Group aims to meet the growing demand for reliable identity verification and background check services.
Ogungbe, the co-founder of Prembly, expresses optimism about the merger, believing it significantly enhances service options and value proposition. This merger may set a precedent for further consolidation in the African tech sector, particularly in areas related to digital security and compliance. The newly formed entity will operate under the Prembly Group name.
The merger was not a sudden development, as Peleza has been utilizing Prembly's infrastructure for the past 18 months. With this merger, the Prembly Group envisions becoming the go-to provider for identity management solutions across Africa and beyond. The merger underscores the growing importance of digital identity management in Africa and the potential for consolidation in the tech sector to drive innovation and growth.
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