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PayDay fintech sale controversy grips Nigerian startup

PayDay fintech sale controversy: Challenges and uncertainty surrounding Nigerian startup’s potential acquisition.

Payday fintech CEO; Favour Ori
Payday fintech CEO; Favour Ori (PHOTO: Techrectory)

PayDay fintech faces a rocky road as it explores a potential sale in the coming months, stirring controversy.

Founded in 2021, PayDay fintech quickly gained attention, raising $3 million for expansion into the UK and Canada.

The seed round was led by Moniepoint Inc., with additional support from investors like HoaQ, DFS Lab’s Stellar Africa Fund, and Ingressive Capital Fund II. Making total investments reached $5.1 million, thanks to angel investors like Dare Okoudjou and Tola Onayemi.

Initially, it seemed that Moniepoint would acquire the company. Reports suggested a deal would be finalized by Q2 2023.

However, the deal hit a snag as Moniepoint’s management hesitated to proceed.

Adding to the Payday sale controversy, CEO Favour Ori, who also had a job at GitHub, reduced his monthly salary from $15,000.

Controversy brewed further when PayDay slashed salaries for some Nigerian employees and shifted payment currency to Naira.The company promised stock options to compensate for the salary cuts, but these have yet to materialize.

PayDay fintech faced internal strife, including the departure of co-founder and COO Yvonne Ogechi Obike.

Obike cited a misalignment of goals as the reason for her exit, raising questions about internal cohesion.

CEO Favour Ori’s leadership style has also come under scrutiny, with reports of impulsive decision-making.

Customers experienced disruptions when PayDay fintech changed its Mastercard provider abruptly. Despite these challenges, they remain actively engaged in discussions for a potential acquisition.

The company’s future is uncertain, with controversies and internal turbulence posing significant obstacles.

In August, the fintech company acknowledged suspending customer account access due to fraudulent activities, further tarnishing its reputation.

As PayDay navigates these complexities, it faces an uphill battle to secure a buyer amid the ongoing sale controversy.

PayDay fintech’s journey is marred by controversy and uncertainties, with the sale hanging in the balance.

Techrectory with Agency Report.

Techrectory on Google News
See also Minister Bosun Tijani says 90% of Nigerians expected to be digitally literate by 2030

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