Nigerian fintech startup Gigbanc has announced that it is winding down its operations after three years in business, citing a difficult fundraising environment and rising operating costs. The decision highlights the growing pressure facing early-stage startups across Africa as venture capital becomes more selective despite continued interest in the continent’s technology sector.
Founded in 2023, Gigbanc built a cross-border payments platform tailored for freelancers, remote workers, digital creators, and businesses. The company offered multi-currency wallets in U.S. dollars, euros, and naira, virtual USD cards, foreign exchange services, bill payments, and local payouts to more than 200 Nigerian banks. Its mission was to simplify how Africans receive and manage international payments.
In a statement announcing the closure, the company said customers have until July 31 to convert their account balances to naira and withdraw eligible funds to local bank accounts without charges. Gigbanc also disclosed that it is in acquisition talks with an unnamed Nigerian fintech infrastructure provider as it explores the next phase of its journey.
According to co-founder and Chief Executive Officer Paul Omoregie Okundaye, the startup struggled to secure the fresh capital needed to sustain and grow the business. He noted that the high costs associated with Know Your Customer (KYC) compliance and maintaining the infrastructure required for a business-to-consumer cross-border payments platform made operations increasingly difficult. Although the company considered pivoting its business model, it was unable to raise sufficient funding to support the transition.
Despite its closure, Gigbanc leaves behind notable achievements. The fintech says it served more than 150,000 users across over 30 countries and processed more than ₦10 billion (about $7.2 million) in payment volume during its lifetime. Beyond its financial products, the company also invested in community-building initiatives, including programs for freelancers and remote workers designed to connect African talent with global opportunities.
Gigbanc’s shutdown reflects broader trends within Africa’s startup ecosystem. While investment into African startups has remained relatively resilient, funding has become concentrated among fewer companies, making it harder for early-stage ventures to secure the capital needed to scale. As a result, several startups have either ceased operations, merged with competitors, or sought acquisitions as alternative exit strategies.
For Nigeria’s fintech industry, Gigbanc’s exit serves as a reminder that innovation alone is not always enough to guarantee survival. As investors place greater emphasis on profitability, operational efficiency, and sustainable business models, startups will need to balance rapid growth with financial discipline. Even so, industry observers remain optimistic that Nigeria’s vibrant fintech ecosystem will continue to produce innovative companies capable of addressing Africa’s evolving digital finance needs.
Leave a Reply