Startup led by U.S.-based Nigerian entrepreneur to acquire Tosin Eniolorunda-backed PayDay

Feyisayo Ajayi -

Bitmama Inc., a leading blockchain payments platform led by California-based Nigerian entrepreneur Ruth Iselema, is currently in advanced negotiations to acquire PayDay—a fintech startup issuing global (USD, EUR, and GBP) accounts to Africans.

This move follows PayDay’s confirmation of its openness to acquisition discussions in September. It recently raised $3 million in a seed-funding round backed by Moniepoint Inc. — a leading fintech company led by Nigerian tech entrepreneur Tosin Eniolorunda.

Bitmama takes on remittance with PayDay acquisition, offering equity to investors

Favour Ori, CEO and co-founder of PayDay, expressed optimism about the potential acquisition, stating, “The deal is a work in progress. If it goes through, the result will be a strong team with much more efficiency.” Industry insiders privy to the negotiations revealed that Bitmama will also absorb PayDay’s customer deposits and liabilities as part of the deal.

Bitmama, led by Iselema, the CEO, has reportedly extended an offer of $1 million worth of equity in the crypto company to Payday investors, valuing the fintech startup at $30 million.

Iselema shed light on the move, stating, “Favor reached out to me because we’re building products beyond crypto; one of those products is Changera, and it made sense to me.” Although Bitmama initially established itself as a crypto exchange, it has pivoted its focus to global services, including remittance.

PayDay: Bridging financial borders for Africans, one transaction at a time

PayDay —  founded by Ori two years ago —  maintains dual headquarters in Canada and Rwanda. The startup specializes in facilitating global money transfers for Africans. Its recent seed funding round boosted its total funding to an impressive $5.1 million since its inception.

In a strategic expansion move unveiled in April, Payday announced its intentions to broaden its footprint in Kenya. This aligns with the company’s broader expansion strategy, which includes securing licensing for its UK entity, expanding into Canada, and substantial workforce increase of 40–50 employees.

As negotiations between Bitmama and Payday progress, the fintech industry anticipates the outcome of this landmark deal — poised to reshape digital finance in Africa and beyond.