Gigbanc, a Nigerian fintech startup providing cross-border payment services, has announced plans to wind down its operations, becoming the latest African startup affected by the challenging fundraising environment facing the continent’s technology ecosystem.
The company, which serves freelancers, remote workers, content creators and businesses, informed customers that it had begun an orderly shutdown process and advised them to convert their foreign currency balances to naira and withdraw eligible funds to their Nigerian bank accounts before the platform closes.
Gigbanc said withdrawals of legitimate customer funds would remain free until July 31, after which its services would no longer be available.
The startup also revealed that it is in discussions to be acquired by an unnamed Nigerian fintech infrastructure company. However, it did not disclose the financial terms or provide a timeline for the proposed transaction.
Founded to simplify international payments for Africa’s growing digital workforce, Gigbanc enabled users to receive payments from international clients and convert their earnings into local currency.
The platform was particularly targeted at freelancers, remote employees, creators and small businesses seeking alternatives to traditional cross-border payment systems.
Paul Okundaye, co-founder and chief executive officer of Gigbanc, said the decision to shut down was largely driven by the company’s inability to raise the capital needed to maintain and expand its operations.
“We built Gigbanc to make global payments easier for Africans participating in the digital economy. While we are proud of what we achieved, the current funding environment has made it difficult to continue operating independently,” Okundaye said.
The shutdown comes amid a gradual recovery in venture capital investment across Africa, although funding remains concentrated among a smaller number of startups.
Investors have become increasingly selective, with greater emphasis on profitability, sustainable unit economics and clear paths to long-term growth.
The changing investment landscape marks a significant shift from the period when African startups were able to attract large amounts of capital while prioritising rapid customer acquisition and market expansion.
With higher interest rates and a reduced appetite for risk, startups are now under increasing pressure to demonstrate financial discipline, operational efficiency and viable revenue models.
Gigbanc’s planned closure adds to a growing list of African technology companies that have shut down, downsized or pursued acquisitions over the past two years as founders struggle to secure additional funding.
For startups unable to raise fresh capital but still possessing valuable technology, infrastructure or customer bases, mergers and acquisitions have increasingly emerged as an alternative exit route.
If completed, Gigbanc’s acquisition by a fintech infrastructure company would further contribute to consolidation in Nigeria’s fintech industry, where larger players are increasingly seeking specialised startups to strengthen their products, technology and capabilities.
Fintech remains one of Africa’s most heavily funded technology sectors and continues to attract a significant share of venture capital investment on the continent. However, the sector has also experienced substantial restructuring and business closures since the global venture capital market tightened in 2022.
For Nigeria’s startup ecosystem, Gigbanc’s shutdown underscores the changing realities of building a technology company in the current market, where access to funding alone is no longer enough.
Startups are increasingly expected to demonstrate sustainable growth, strong revenue models and efficient operations as investors become more cautious about where they deploy capital.
