Merging Forces: Combination of Prembly and Peleza Creates a Powerful Identity Management Entity
In a significant move for the African tech sector, Kenyan startup Peleza has merged with YC-backed Prembly to form the Prembly Group. This merger brings together Peleza's established presence and industry partnerships with Prembly's innovative technology and recent funding success.
Lanre Ogungbe, co-founder of Prembly, will lead as CEO of the Prembly Group, while Marita Mutemi, Peleza's founder, will be the CFO and CEO of Prembly East Africa. Other Peleza executives will retain leadership positions to maintain continuity.
Prembly, founded in 2021, secured $2.8 million in seed funding in 2022 from investors like MaC Venture Capital and Soma Capital. The merger aims to leverage Peleza's industry knowledge for Prembly Group's East African operations and enhance customer service offerings across various markets.
The Prembly Group will utilize Peleza's expertise in background checks in addition to Prembly's prowess in identity verification, security, and compliance. The new entity will operate under the Prembly Group name to capitalize on Prembly's brand equity and global recognition in compliance and digital security solutions.
The merger represents a significant consolidation in the African identity management market. 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 may set a precedent for further consolidation in the African tech sector, particularly in areas related to digital security and compliance. The formation of the Prembly Group signals 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.
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. The merger has been in development for the past 18 months, with Peleza using Prembly's infrastructure during this time.
The merger results in a workforce of approximately 100 employees, with about ten staff members being let go due to role duplications, receiving severance packages. The Prembly Group aims to meet the growing demand for reliable identity verification and background check services as the digital landscape continues to evolve.
Investors in Prembly's $2.8 million Series A funding in 2022 included Tiger Global, 1kx, and Not Boring Capital. The merger comes as these investors and others continue to show interest in the African tech sector, particularly in companies that offer innovative solutions in digital security and compliance.
Peleza, established in 2015, has a strong presence in East Africa and partnerships with Uber, Bolt, and FedEx. The merger is expected to strengthen these partnerships and forge new ones, further solidifying the Prembly Group's position in the market.
Ogungbe expresses optimism about the merger, believing it significantly enhances service options and value proposition. He believes the Prembly Group will be well-positioned to address the challenges and opportunities in the African tech sector, particularly in the areas of identity management, digital security, and compliance.
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