Zazuu, a London-based fintech that built a marketplace for African remittance companies and raised more than $2 million, has shut down, citing a lack of funding.
“We explored every option before making this decision,” the company said in a LinkedIn post announcing the closure.
Founded in 2018 by Kay Akinwunmi (CEO), Korede Fanilola (COO), Tosin Ekolie (CTO), and Tola Alade (CDO), Zazuu has shut down due to a lack of funding. The fintech created a marketplace for African remittance companies for which it raised more than $2 million, including a $200,000 seed round from Launch Africa and ODBA in August 2021.
A year after its seed round, Zazuu secured $2 million in funding from investors including:
- Launch Africa
- Founders Factory Africa
- ODBA
- HoaQ
- Tinie Tempah
- Jason Njoku
- Babs Ogundeyi
and other angel investors.
Zazuu, initially a basic Facebook and Telegram chatbot providing users with daily foreign exchange rates, transformed into a comprehensive aggregator featuring over 17 Africa-focused remittance providers on its platform before closing down.
The startup operated with the premise that a marketplace offering customers the ability to choose the most cost-effective remittance option could contribute to reducing prices through enhanced transparency and increased competition.
Zazuu had ambitious plans to expand its user base, hire more talent, and scale its ‘Pay with Zazuu’ feature, allowing users to complete transactions within the app. Initially available for senders in the U.K. and receivers in Nigeria and Ghana, the company aimed to broaden its service to additional markets.
Unfortunately, these expansion plans were halted, ultimately leading to the fintech’s closure.
“Sure, it stings. But we are walking away with our heads high, proud of what we have built and the lesson learned,” the company said.
Zazuu’s closure adds to the trend of startups shutting down in 2023 due to dwindling funding in Africa’s tech ecosystem. As of the end of October 2023, African startups had secured less than $2.8 billion in 2023, which is less than half of the $6 billion raised in the previous year [2022].
Other startups that have closed in 2023, such as Lazerpay in April 2023 and WhereIsMyTransport in October 2023, have also cited a lack of funding as a key factor in their shutdowns.
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