Nigerian Fintech Gigbanc Shuts Down After 3-Year Operation, Announces Customer Withdrawal Deadline
- A Nigerian fintech startup is shutting down after three years, citing difficulty raising funds and rising operating costs
- Customers have until July 31 to withdraw their legitimate funds as the company ends operations
- Gigbanc's closure reflects the growing funding challenges facing African startups, with fewer investment deals
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigerian fintech startup Gigbanc has announced plans to cease operations after three years in business, blaming the increasingly difficult fundraising environment for its decision to shut down.
The company, which developed cross-border payment solutions for freelancers, digital creators, remote workers and businesses, disclosed that it is currently in acquisition discussions with an unnamed Nigerian fintech infrastructure provider as it explores an exit strategy.
Source: UGC
Gigbanc also advised customers to withdraw their funds before its closure. Users have until July 31 to convert their account balances into naira and transfer all legitimate funds to local bank accounts without incurring charges.
Rising costs, limited funding forced difficult decision
The startup said a combination of declining access to venture capital and the high cost of operating its business made it unsustainable to continue, according to Techcabal.
According to Gigbanc's co-founder and Chief Executive Officer, Paul Omoregie Okundaye, maintaining a business-to-consumer cross-border payments platform became increasingly expensive due to compliance requirements, particularly Know Your Customer (KYC) regulations, alongside infrastructure expenses.
He explained that while the company explored the possibility of changing its business model, it was unable to secure the fresh investment required to finance that transition. As a result, management concluded that pursuing a sale of the business was the most practical option.
The closure reflects a broader trend across Africa's startup ecosystem, where many early-stage companies are struggling to attract new investment despite modest improvements in overall funding figures.
Startup served 150,000 users across 30 countries
Established in 2023, Gigbanc positioned itself as a digital banking platform designed for Africa's growing community of freelancers, remote workers and online entrepreneurs earning foreign income.
Its services included multi-currency wallets supporting the US dollar, euro and naira, virtual dollar cards, foreign exchange services, bill payments and local transfers to more than 200 Nigerian banks.
Over its three-year operation, the company said it served over 150,000 users in more than 30 countries and processed transactions worth over ₦10 billion.
Beyond financial services, Gigbanc invested in community-building initiatives aimed at supporting freelancers and remote professionals through programmes such as the Global Talent Fellowship, GigConnect and GigSocial.
Okundaye expressed appreciation to the company's employees, users and community, saying Gigbanc was founded on the belief that African professionals deserved world-class financial infrastructure.
He added that although the business is coming to an end, the company remains optimistic about the future of Africa's digital economy while focusing on concluding ongoing acquisition negotiations.
Source: UGC
Gigbanc's exit adds to the growing list of African startups forced to wind down operations or seek alternative exits as venture funding becomes harder to obtain.
The latest shutdown highlights the mounting pressure facing African technology startups as investors adopt a more cautious approach to early-stage funding despite continued growth in the continent's digital economy.
Lidya shuts down after 10 years
Meanwhile, Legit.ng earlier reported that Lidya, a digital-lending startup founded by ex-Jumia executives, shut down its Nigerian operations.
The company has been in operation for nearly a decade, but has been under financial distress recently.
Analysts blamed the collapse on credit risks, tight funding conditions, and unsustainable growth targets.
Source: Legit.ng
