Africa-Focused Remittances Fintech Zazuu Shut Downs After Failing to Secure Additional Funding

An Africa-focused remittances firm, Zazuu, has go the latest fintech startup to adjacent store aft it failed to rise other funding. Zazuu and different African fintechs’ backing problems are said to beryllium linked to the illness of Silicon Valley Bank successful the U.S.

Zazuu Shuts Down Just Over a Year After Raising $2 Million

Zazuu, an Africa-focused cross-border remittances fintech startup, precocious said its inability to unafraid further backing had forced it to unopen down. The startup’s determination to adjacent store travel conscionable implicit a twelvemonth aft it raised $2 cardinal from investors that included Launch Africa, Founders Factory, and rapper Tinie Tempah.

In a Linkedin post explaining the “difficult news,” Zazuu said it had worked hard to marque cross-border wealth transfers “fair.” However, the backing clime yet made it intolerable for the startup to proceed operating.

“With the enactment of our investors and team, we made immense strides – securing regulatory approvals, gathering our products, and laying the groundwork for aboriginal growth.
However, owed to a pugnacious backing climate, we failed to unafraid [a] maturation funding
round. We explored each enactment earlier making this decision,” Zazuu said successful a statement.

According to a Techcabal report, Zazuu is the latest fintech startup successful 2023 to mention backing challenges arsenic the superior crushed for closing shop. Lazerpay, Paystack, and Vibra are immoderate of the fintech firms which person either unopen down oregon scaled down operations owed to backing challenges.

African Fintechs ‘Need Favourable Funding’

Meanwhile, successful his absorption to Zazuu’s announcement, Linkedin idiosyncratic and entrepreneur Ogar Phil Blaize suggested that the closure could beryllium linked to the demise of the Silicon Valley Bank. Before its collapse, the slope had chiefly focused connected supporting tech businesses some successful and extracurricular the U.S. However, successful his Nov. 20 post, the Linkedin idiosyncratic implied that determination has been nary slope focused connected supporting African fintechs since Silicon Valley Bank’s collapse.

Therefore, successful bid to extremity the rhythm of African fintechs shutting down owed to deficiency of funding, Blaize said:

“Many startups affected with this dilemma, particularly African startups volition request favourable backing again to basal up other present oregon aboriginal we volition beryllium proceeding much unopen down.”

Register your email present to get a play update connected African quality sent to your inbox:

What are your thoughts connected this story? Let america cognize what you deliberation successful the comments conception below.