Capitalsage has signed an agreement in principle to acquire Chimoney through its parent company, Chi Technologies Inc., according to an announcement made by founder Uchi Uchibeke on Monday.
The proposed acquisition marks a dramatic turnaround for the Canada-based payments infrastructure startup, which publicly announced in May that it was winding down operations after struggling to achieve the scale necessary to sustain its business.
If the transaction is completed, Chimoney will become CapitalSage's first payments entity in Canada, giving the African financial services group a strategic foothold in one of the world's most tightly regulated payments markets.
From Shutdown Announcement to Acquisition Talks
The deal comes barely four weeks after Chimoney disclosed that it could no longer continue operating independently.
At the time, Uchibeke revealed that despite building a platform capable of enabling businesses to send and receive payments in 41 currencies across Africa, North America, and Latin America, the startup had struggled to achieve sufficient customer acquisition and distribution.
Revenue growth had slowed, fundraising efforts yielded less than $1 million in capital, and the company ultimately concluded that it lacked the financial resources needed to continue scaling.
As part of the shutdown process, Chimoney stopped processing new transactions and began returning customer funds.
However, the transparency surrounding the closure appears to have created an unexpected opportunity.
Reflecting on the events that followed the wind-down announcement, Uchibeke explained how the public disclosure attracted the attention of potential acquirers.
"When I announced the wind-down in May, I told the truth about what went wrong."
"The coverage reached over a dozen publications. Everyone used my framing. Within days, CapitalSage reached out. The wind-down became the pitch."
The statement highlights a rare scenario in the startup ecosystem where openly discussing business challenges and operational realities helped create a pathway to a rescue transaction.
Investors and Employees Set to Benefit
According to Uchibeke, the acquisition agreement will allow Chimoney to fulfil obligations to both investors and employees.
Once the transaction is completed, all investors are expected to be repaid in full from the acquisition proceeds.
Employees who remained through the shutdown process will also receive compensation from the deal, providing a more favourable outcome than is often seen in startup closures.
Uchibeke added that he will remain involved with the company for approximately six months after the acquisition closes to oversee the transition and integration process.
The founder's continued involvement is expected to help preserve institutional knowledge while ensuring a smoother handover of operations and regulatory responsibilities.
Abiola Bawuah, Group CEO of CapitalSage Holdings and Uchi Uchibeke, founder and chief executive officer, Chimoney. Image Source: @uchiuchibeke on X
Regulatory Licences Become Key Asset
One of the most significant aspects of the acquisition is the value attached to Chimoney's regulatory approvals.
When announcing the company's shutdown in May, Uchibeke noted that Chi Technologies Inc. would remain active even as Chimoney ceased operations. He also decided to maintain the company's regulatory registrations instead of allowing them to expire.
That decision appears to have become one of the primary reasons the acquisition materialised.
"I preserved the PSP and MSB. Many people told me to let them lapse."
"Those licenses are why this deal happened."
The company held a Money Services Business (MSB) registration and had recently secured a Payment Service Provider (PSP) licence, both of which can be difficult and time-consuming to obtain in highly regulated jurisdictions.
For CapitalSage, acquiring a company with existing regulatory approvals offers a faster and potentially less costly route into the Canadian payments market.
Why Canada Matters for CapitalSage
The acquisition represents more than a rescue deal for Chimoney.
For CapitalSage Holdings, it provides an opportunity to expand beyond its existing footprint and establish a regulated presence in North America.
The group currently operates across several markets, including Nigeria, Kenya, The Gambia, the United Arab Emirates, and the United Kingdom.
By acquiring Chi Technologies, CapitalSage gains access to established regulatory infrastructure in Canada without having to navigate the entire licensing process independently.
The transaction will not be completed immediately, however.
According to Uchibeke, the acquisition will be executed in phases to comply with requirements under Canada's Retail Payment Activities Act.
The phased structure allows regulators to review ownership changes and ensure compliance before the transfer is fully completed.
Such regulatory scrutiny is common in financial services transactions, particularly where payment licences and money movement infrastructure are involved.
A New Chapter for the Founder
While Chimoney enters a new phase under CapitalSage's ownership, Uchibeke is preparing to focus on a different venture.
The entrepreneur disclosed that he will now dedicate his attention to APort, an artificial intelligence product being developed independently of Chimoney.
Although the acquisition offers a positive outcome for stakeholders, Uchibeke emphasized that it was never part of the original plan when he announced the company's closure.
"I did not plan for this."
"I wrote the wind-down post because it was the right thing to do. The integrity of that process is what brought CapitalSage to the table."
An Unusual Exit in Africa's Startup Ecosystem
The acquisition stands out in a startup ecosystem where closures often result in complete losses for investors and little recovery for employees.
Instead, Chimoney's story illustrates how intellectual property, regulatory licences, and operational infrastructure can retain significant value even when a startup's core business struggles to achieve commercial scale.
For CapitalSage, the transaction offers a strategic expansion opportunity. For Chimoney's investors and staff, it provides a far better outcome than a traditional shutdown.
And for Uchibeke, it transforms what initially appeared to be the end of a startup journey into the beginning of a new chapter—one shaped by transparency, resilience, and an unexpected second chance.