Nigerian Company Offering Buy Now, Pay Later Services Shuts Down
- Nigerian buy now, pay later startup Klump announced its closure after five years, with co-founder Celestine Omin publishing a farewell post
- Klump built a merchant network that included Jumia and Konga, raising about $1.2 million from investors including Seedcamp and Voltron Capital
- The startup struggled to secure enough lending capital and faced bank integration timelines that stretched up to three years in some cases
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerian buy now, pay later company Klump has ceased operations after five years, marking the end of its bid to make instalment payments a mainstream option for online shoppers across the country.
Celestine Omin, the company's co-founder and chief executive officer, confirmed the shutdown in a farewell blog post on Sunday, October 25, 2026.
Source: Facebook
Omin wrote:
"Today, with heavy hearts, we are announcing that Klump is shutting down. We are proud of what we built. Few things are as fulfilling as watching people use a product that once existed only in your imagination."
TechPoint reports that Omin and co-founder Olufunbi Falayi launched Klump in 2021 with a focus on letting Nigerians spread the cost of online purchases over time.
Their flagship product, Pay with Klump, allowed shoppers to buy items immediately and settle the cost across four instalments, helping merchants reduce cart abandonment driven by upfront pricing.
How Klump changed its business model
Klump originally funded purchases directly from its own loan book, with credit decisions promised in under five minutes. When the company could not raise enough debt capital to support growth, it pivoted to a lending marketplace model, connecting shoppers at checkout with banks and finance companies rather than taking on credit risk itself.
Partners under this arrangement included First Bank, Stanbic IBTC, Polaris Bank, Wema Bank, Fidelity Bank, Credit Direct and RenMoney.
The company also rolled out Klump Commerce, a product designed for merchants without websites who wanted to offer instalment options across multiple locations.
Bank integrations hampered the company's growth
Despite the pivot, progress remained slow. The founders said onboarding a single lender could take between six and 18 months, with some partnerships dragging on for close to three years before commercial and legal agreements were finalised. That pace made it difficult to scale the business quickly enough to remain viable.
The Condia reports that returning to direct lending was not a realistic option either, as it would have required the company to fund its own loan book independently, which it could not arrange.
Source: Getty Images
Klump explored a sale as a way forward.
A potential deal that came up in late 2023 collapsed after months of due diligence. At the start of 2026, the founders pursued acquisition discussions again and received an offer, which they ultimately declined without giving a reason publicly.
Over its lifetime, the company raised about $1.2 million across a seed round and a subsequent extension. Investors included Seedcamp, Magic Fund, Yellowwood Capital, Voltron Capital and Kesho VC.
In their final message, the founders said the problem that Klump was built to solve remains unresolved.
They wrote:
"Access to credit remains an unsolved problem".
Moove shuts down operations in Nigeria
Earlier, Legit.ng reported that Moove, the vehicle financing and mobility company backed by Uber, has ended its operations in Nigeria, closing its doors in the same market where it was originally founded.
The shutdown took effect on Thursday, October 8, 2026, roughly one month after Uber itself wound down its 12-year presence in Nigeria and Uganda following a review of how it allocates investment across the African continent.
Source: Legit.ng
