Nigerian fintech company Gigbanc has revealed that it will discontinue its operations after spending three years in the market, citing the worsening fundraising climate as the primary reason behind the decision.
The startup, known for providing cross-border payment services to freelancers, digital creators, remote workers, and businesses, said it is currently in talks with an undisclosed Nigerian fintech infrastructure company regarding a possible acquisition as part of its planned exit process.
As part of the shutdown arrangements, Gigbanc has urged all customers to withdraw their funds before the platform officially closes.
The company stated that users have until July 31 to convert the balances in their accounts to naira and move all legitimate funds to local Nigerian bank accounts without paying any transfer fees.
Rising costs, limited funding forced difficult decision
Gigbanc explained that dwindling access to venture capital, combined with the growing expense of running its operations, ultimately made it impossible to sustain the business.
Paul Omoregie Okundaye, the company’s co-founder and Chief Executive Officer, noted that operating a business-to-consumer cross-border payments platform had become increasingly costly due to regulatory compliance obligations, particularly Know Your Customer (KYC) requirements, as well as rising infrastructure expenses.
He said the company considered pivoting to a different business model but was unable to obtain the additional funding needed to support that transition.
Consequently, the leadership determined that seeking a buyer for the company represented the most viable path forward.
Gigbanc’s shutdown also mirrors a wider pattern within Africa’s startup ecosystem, where many early-stage ventures continue to face difficulties attracting fresh investment despite slight improvements in overall funding across the sector.
Startup served 150,000 users across 30 countries
Founded in 2023, Gigbanc introduced itself as a digital banking platform tailored to Africa’s expanding population of freelancers, remote workers, and online entrepreneurs who receive income in foreign currencies.
The platform offered a range of financial services, including multi-currency wallets for the US dollar, euro, and naira, virtual dollar cards, foreign exchange solutions, bill payment services, and local transfers to more than 200 banks across Nigeria.
During its three years of operation, the startup reported serving more than 150,000 users across over 30 countries while processing transactions valued at over ₦10 billion.
In addition to its financial products, Gigbanc also focused on building a professional community for freelancers and remote workers through initiatives such as the Global Talent Fellowship, GigConnect, and GigSocial.
Okundaye thanked the company’s staff, customers, and wider community for their support, noting that Gigbanc was established with the conviction that African professionals should have access to world-class financial infrastructure.
He further stated that although the company is winding down its operations, it remains confident about the future of Africa’s digital economy as it continues efforts to finalize its ongoing acquisition discussions.
