Another Nigerian Fintech Startup Shuts Down After Raising $2m From Over 18 Investors

Another Nigerian Fintech Startup Shuts Down After Raising $2m From Over 18 Investors

  • A Nigerian startup, Pivo, has joined the league of tech platforms that are closing down
  • This happened after the fintech platform raised $2m from over 18 investors about one year ago
  • The startup provided banking services to small haulage and logistics companies operating in Nigeria's supply chain

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Pivo, a Nigerian startup fintech firm, has announced that it is shutting down operations.

Another Nigerian fintech, Pivo shuts down after raising $2m from over 18 investors
Pivo was founded in July 2021 by Nkiru Amadi-Emina, the CEO, and Ijeoma Akwiwu, the COO. Photo Credit: Pivo, Jayk7
Source: Getty Images

The closure comes after the company raised $2 million in a seed round from Y Combinator, Ventures Platform, Mercy Corp Ventures, and over 15 other investors.

While a source confirmed the closure to TechCabal, the company declined to provide specific details but said that will be done later.

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Pivo raised funds after the launch

The company was founded in July 2021 by Nkiru Amadi-Emina, the CEO, and Ijeoma Akwiwu, the COO. It provided banking services to small haulage and logistics companies operating in Nigeria's supply chain.

Two months after its launch, Pivo raised a $100,000 pre-seed round from investors like Microtraction, FirstCheck Africa, and Rally Cap Ventures.

In November 2022, the startup raised a $2 million seed round to expand its operations to East Africa and launch new products around payments, a major pain point for supply chain SMEs.

Pivo Capital, a loan product, and Pivo Commercial, a commercial banking product, were the startup's two fintech verticals.

In the year following its founding, the company claimed to have processed over $4 million through Pivo Business and disbursed over $3 million in loans through Pivo Capital.

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This development follows an earlier report that Zazuu, a fintech company focusing on Africa, has officially ceased its operations due to the inability to secure additional funding.

The closure announcement was made through a LinkedIn post where the startup acknowledged the challenge of obtaining sufficient growth funding as the primary reason for the shutdown.

Fintech startup, Payday explains restriction on 2,000 accounts

Legit.ng reported that Payday, a fintech company, has reacted to claims of restricted access to about 2,000 accounts and funds by some customers, including Mastercard balance and withdrawal restrictions.

This is coming after the Pan-African neo-bank issuing global (USD, GBP, & EUR) accounts to Africans announced its re-entry into Rwanda following the official launch of SpaceX's Starlink in East Africa.

Legit.ng earlier reported that the fintech startup said it serves Africans ready to send, receive, and spend money globally without limitations.

Source: Legit.ng

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