Thepeer, a fintech firm based in Nigeria, has abruptly declared that it is going to shut down and give its investors their money back. The startup, which gained notoriety in June 2022 with a $2.1 million seed financing, closed, mostly citing issues with market acceptability and scalability.
Thepeer, established in April 2021 by co-founders Kosisochukwu Chike Ononye and Michael “Trojan” Okoh, aimed to revolutionize the fintech landscape by providing API solutions for seamless money movement across various platforms. Despite initial optimism and significant investment, the startup struggled to overcome hurdles related to compliance and the slow adoption of wallet-based payments.
The co-founders acknowledged the difficulty of the decision, emphasizing, “Our unique service had its challenges, the first being compliance issues. Additionally, the overall acceptance of wallets as a viable payment option didn’t grow as rapidly as we had hoped.”
The startup’s closure echoes a broader trend in the African fintech space, with Thepeer becoming the second company to return capital to investors in 2024 following Cova, a wealth tech startup.
Initially backed by notable investors including Ezra Olubi, co-founder of Paystack, and Prosper Otemuyiwa, Edenlife CTO, Thepeer had ambitious plans for expansion across the continent. Despite reporting significant transaction volumes and growth metrics, the company ultimately struggled to align its product with market demands.
In response to the shutdown, the co-founders have opted to place the platform in maintenance mode while exploring future opportunities. “We’ll work to maintain the platform for as long as possible until we discover a new home for it,” the statement affirmed.
The demise of Thepeer serves as a cautionary tale within the African fintech ecosystem, highlighting the challenges inherent in navigating regulatory landscapes and achieving widespread adoption. As the industry continues to evolve, startups face mounting pressure to innovate while ensuring sustainable growth strategies.
