Afrigather Zazuu, a London-based fintech that constructed a market for African remittance corporations and raised greater than $2 million, has shut down, citing a scarcity of funding.
Zazuu, the fintech market for cross-border fee networks in Africa that raised over $2 million from traders like Launch Africa and Founders Manufacturing facility, has shut down after failing to lift funding. “We explored each possibility earlier than making this choice,” the corporate stated in a LinkedIn submit asserting the closure.
Zazuu was based by Kay Akinwunmi (CEO), Korede Fanilola (COO), Tosin Ekolie (CTO), and Tola Alade (CDO) in 2018 and raised a $200,000 seed spherical from Launch Africa and ODBA in August 2021. A 12 months later, the corporate raised $2 million from Launch Africa, Founders Manufacturing facility Africa, ODBA, HoaQ, Tinie Tempah, Jason Njoku, Babs Ogundeyi, and different angel traders.
Africa has the very best charge for remittance providers for any continent; the typical charge for sending cash to the continent from Europe hovers round 9% and may very well be as excessive as 22% in some situations. Zazuu, which began as a easy Fb and Telegram chatbot informing customers of every day FX charges, advanced right into a full-blown aggregator that listed greater than 17 Africa-focused remittance suppliers on its platform earlier than its closure.
The startup operated on the idea {that a} market the place prospects may select the most cost effective remittance possibility may assist decrease costs by bringing transparency and growing competitors. Akinwunmi instructed TechCabal in March 2022 that Zazuu had the bottom charge anybody transferring cash to Africa may get on the platform, at 1.5%. The startup additionally stated that just about 100 thousand customers had used its Search and Examine service, which prospects used to match costs to seek out the most effective charges for sending cash to Africa.
Adewunmi instructed TechCabal in Could 2022 that one of many challenges Zazuu confronted in its earlier phases was explaining to prospects and potential companions what they had been attempting to construct. He added that one other problem Zazuu confronted was licensing necessities and the prices connected to them.
Zazuu’s shutdown is one other in a sequence of startups shutting down this 12 months as funding dries up for Africa’s tech ecosystem. By the top of October, African startups had raised lower than $2.8 billion this 12 months, which represents lower than half of the $6 billion raised final 12 months. Lazerpay, a crypto startup that shut down in April, additionally blamed a scarcity of funding for its closure. WhereIsMyTransport, a South African mobility startup, additionally shut down in October, citing an incapability to lift new funding.
