• Sunday, June 23, 2024
businessday logo

BusinessDay

Zazuu, African-focused fintech, shuts down over funding challenge

Zazuu, African-focused fintech, shuts down over funding challenge

Zazuu, a U.K.-based and Africa-focused fintech startup has shuttered due to its inability to raise additional funding. “We failed to secure a growth funding round. We explored every option before taking this difficult decision,” the company said in a statement.

Recall that last year, Zazuu raised $2 million to deepen its cross-border payment offering and also build what it described as the world’s first non-biased payment platform.

The fundraising round saw participation from Launch Africa, Founders Factory Africa, Hoaq Club, and other investors including CEO of Kuda, Babs Ogundeyi.

Read also: How fintechs are changing Nigerians saving culture

Announcing it in a LinkedIn post, the startup attributed the shutdown to its inability to secure a growth funding round.

Founded in 2018 by four Nigerian entrepreneurs, Kay Akinwunmi (CEO), Korede Fanilola (COO), Tosin Ekolie (CTO), and Tola Alade (CDO), Zazuu is an end-to-end money transfer marketplace that lowers the cost of remittance payments into Sub-Saharan Africa.

The company said it is the world’s first cross-border payment marketplace that allows customers to find the best rates across multiple financial providers, view the real costs of a transfer before sending, and track a transfer from source to recipient.

“To our friends and supporters, we have some difficult news to share. Zazuu will be closing its doors,” the company said.

Read also: Five ways open banking can boost Nigeria’s fintech market

“When we started Zazuu, we aimed to make international money transfers fair for Africans. With the support of our investors and team, we made huge strides in securing regulatory approvals, building our products, and laying the groundwork for future growth.”

However, the company said due to a tough funding climate, it failed to secure a growth funding round despite exploring every option before making the decision.

“Massive thanks to our brilliant team, our customers who stuck with us, our investors, and partners who bought into our vision. Your belief in us kept us going.

“Sure, it stings. But we’re walking away with our heads high, proud of what we built and the lessons learned. We’re still all about making financial services fair and accessible for all. We are so grateful to have shared this experience with you,” the startup said.

The startup, in July last year, announced it secured $2 million to deepen its cross-border payment offering and also build the world’s first non-biased payment platform.