Africa-focused Fintech Company Zazuu Shuts Down Operations Over Inability to Secure Growth Funding Round
London-based African-focused fintech startup, Zazuu has shut down operations over inability to secure a growth funding round.
Despite raising $2 million in June 2022 to enhance its cross-border payment services and develop a remarkable payment platform, the startup faced difficulties in sustaining its growth ambitions.
Announcing the shutdown via a LinkedIn post, the company cited a tough funding climate which posed a serious challenge for it to secure a growth funding round.
The post reads,
“To our friends and supporters, we have some difficult news to share. Zazuu will be closing its doors. When we started Zazuu, our mission was to make international money transfers fair for Africans. With the support of our investors and team, we made huge strides in securing regulatory approvals, building our products, and laying the groundwork for future growth.
“However, due to a tough funding climate, we failed to secure a growth funding round. We explored every option before making this decision. 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. Sure, it stings. But we’re walking away with our heads high, proud of what we built and the lessons learned. We’re still all about making financial services fair and accessible for all. We are so grateful to have shared this experience with you”.
Zazuu launched in 2018 with a mission to make international money transfers fair for Africans. The startup secured regulatory approvals, expanded its product offerings, and laid the foundation for future growth.
The startup positioned itself as a transparent aggregator, providing users with a comprehensive view of remittance options. According to the CEO Kay Akinwunmi, he said that Zazuu operated on the belief that a marketplace where customers could choose the cheapest remittance option could help lower prices by bringing transparency and increasing competition.
The shutdown of Zazuu follows a trend of funding challenges impacting African startups, which has seen several other shutdown operations.
