Ayodeji Ayenuwa
In a surprising turn of events, Nigerian fintech startup Pivo has announced its closure, merely a year after securing a substantial $2 million seed funding round from Y Combinator and other investors.
CEO Nkiru Amadi-Emina confirmed the shutdown and refrained from divulging specific details, stating, “I cannot provide the specifics at this time but will be happy to do so later.”
Founded in July 2021, Pivo carved its niche by providing banking services to small supply chain businesses in Nigeria. The startup offered two primary services: Pivo Capital, a lending product, and Pivo Business, a business banking service.
Notably, the company claimed to have disbursed over $3 million in loans and processed more than $4 million through its platforms.
Pivo’s closure aligns with the broader trend of African startups facing shutdowns in 2023 due to economic challenges and funding gaps. Notable counterparts like Lazerpay, 54gene, and Hytch have similarly shuttered their operations this year.
- ATTENTION: Techrectory gives ₦5,000 monthly to our top readers, CLICK HERE to become a winner.
However, what sets Pivo apart is the underlying founder conflict between Nkiru Amadi-Emina and Ijeoma Akwiwu.
While the CEO admitted the shutdown was due to unresolved issues, she refrained from elaborating, stating, “I will be happy to do so at a later date.” The conflict reportedly impacted the startup’s reputation, team dynamics, and business relationships.
Investor intervention in May 2023 sought to address the internal strife, including the establishment of an operational Board of Directors and the revision of employment contracts.
A memo from the investors stated, “The founders will devote their full business efforts and time exclusively to Pivo Inc., and shall not engage in any other business activities or ventures that may compete with or interfere with Pivo Inc.’s operations or interests.”
Despite these efforts, a recent town hall meeting with investors led to the decision to shut down the company. Pivo has not disclosed details of the transition plan for its users after closure.
The startup’s notable funding history, participation in Y Combinator, and the $2 million seed round in November 2022 pose questions about the factors contributing to its demise.
Both founders, Amadi-Emina and Akwiwu, have not yet responded to requests for comments.
SOURCE: TechCabal
Techrectory with Agency Report.
