Peleza, the Kenyan identity management startup has merged with YC-backed Prembly. The outcome of this merger is a new business entity known as the Prembly Group. The move follows a long period of collaboration between the two partners during which they realized that a permanent merger would enable cost-saving and enhance revenue growth from joint operations as well as opportunities for investors and shareholders.
“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,” said Lanre Ogungbe, the co-founder and CEO of Prembly.
“Merging both companies significantly increases our options and value, positioning us as the most used provider across Pan-Africa and achieving leader status in this space,” He also added.
Prembly provides identity verification, security, and compliance for businesses. On the other hand, Peleza conducts background checks for businesses. Peleza has been able to build partnerships in East Africa with mobility apps Uber and Bolt and logistics corporation FedEx.
This merger means that the nascent Prembly Group will finally have the capabilities to build a bigger East African business. Peleza’s industry knowledge will be of a significant advantage in improving the Prembly Group’s range of customer service offerings. Plans to intergrate the KYC/B technology platforms for both companies are also well underway.
Peleza is the older of the two companies; it was founded in 2015 and has not disclosed funding from venture capital firms. Prembly was founded in 2021 and raised a $2.8 million seed round in 2022, backed by MaC Venture Capital and Soma Capital. Over the last 18 months, Peleza has been using Prembly’s infrastructure.
“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,” Peleza’s founder Marita Mutemi told TechCabal.
“The merger between Prembly and Peleza is a dynamic step forward, significantly enhancing our offerings, coverage, and capabilities. It marks the beginning of an exciting new chapter,” says Lydia Makrionitis, head of Expansion Growth and Operations in Prembly’s U.S. team.
Other team members of the merged companies are quoted in the announcement as praising the amalgamation, saying it will enable the new company to provide better and more reliable services to customers across the board including sectors like telecommunications, finance, and digital commerce.
Ogungbe has been appointed the CEO of Prembly Group. Marita Mutemi, the founder and CEO of Peleza, will join the Prembly Group as CFO and double as the CEO of Prembly East Africa.
“Other executives from Peleza have been reassigned and retained their leadership roles, ensuring continuity and stability,” Mutemi told TechCabal.
The merger creates a combined team of about 100 employees. Ogungbe and Marita disclosed that at least ten employees will be let go because their roles have been duplicated because of the merger. Those staff members will receive a severance package.
