Ayodeji Ayenuwa
London-based fintech Zazuu has ceased operations due to funding challenges, marking the end of its venture to revolutionize cross-border payments in Africa.
The startup, founded in 2018 by Kay Akinwunmi, Korede Fanilola, Tosin Ekolie, and Tola Alade, had garnered attention for its unique approach.
In a LinkedIn post, the company made a straightforward announcement, stating, “To our friends and supporters, we have some difficult news to share. Zazuu will be closing its doors.”
Despite initial success, Zazuu faced obstacles in sustaining its operations, primarily attributed to the difficulty in securing growth funding. The company had raised $200,000 in a seed round in August 2021 and secured an additional $2 million in funding a year later.
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Zazuu’s journey began with a chatbot providing daily remittance rates through Facebook and Telegram groups. Over time, it evolved into a comprehensive aggregator, listing over 17 service providers for money transfers from North America and Europe to Africa.
The platform aimed to address the high average rates for sending money to Africa by providing transparency and empowering users to choose cost-effective services.
The LinkedIn post expressed gratitude, stating, “Massive thanks to our brilliant team, our customers who stuck with us, our investors, and partners who bought into our vision. Your belief in us kept us going.”
Zazuu’s closure is reflective of broader trends in Africa’s tech ecosystem, where startups have encountered funding difficulties throughout the year.
By the close of October, African startups had secured less than $2.8 billion this year, marking a decline compared to the $6 billion raised in the previous year.
Lazerpay, a crypto startup that ceased operations in April, similarly attributed its closure to a scarcity of funding. Another casualty in this trend is WhereIsMyTransport, a South African mobility startup, which shut down in October, citing challenges in securing new funding.
Techrectory with Agency Report.
