The Nigeria-based API startup, Thepeer, which raised a $2.1 million seed round in June 2022, has announced the closure of its business and the return of its remaining capital to investors after struggling to achieve scalability, according to a statement released on Monday.
The three-year-old startup acknowledged that despite its innovative technology, it faced challenges that led to its decision to cease operations. “Our unique service encountered obstacles, primarily compliance issues. Furthermore, the widespread adoption of wallets as a viable payment option did not progress as rapidly as anticipated,” the statement read. Thepeer aimed to facilitate payments by connecting wallets across more than 400 fintechs across the continent.
Thepeer’s closure marks the second instance in 2024 of a startup returning remaining capital to investors, following Cova, a wealthtech startup, which faced similar challenges, highlighting the complexities of building fintech ventures in Africa.
Founded in April 2021 by Kosisochukwu Chike Ononye and Michael “Trojan” Okoh, Thepeer aimed to provide infrastructure for fintech businesses, particularly small to medium-sized enterprises. Initially, it secured a pre-seed round of $220,000 from investors such as Ezra Olubi, Co-founder of Paystack, and Prosper Otemuyiwa, CTO of Edenlife, according to Crunchbase.
A year later, it successfully raised a $2.1 million seed round led by the Raba Partnership, with participation from investors including RaliCap, Timon Capital, BYLD Ventures, Musha Ventures, Sunu, and Uncovered Fund.
In 2022, Thepeer boasted a monthly transaction volume reaching millions of dollars, with an average Month-on-Month transaction growth rate of 161%. The company had ambitious plans to expand to other African countries like Kenya, South Africa, and Egypt. However, despite its growth trajectory, Thepeer acknowledged its failure to align its product with market needs.
In an effort to refocus and address core issues, both founders have opted to place the product in maintenance mode temporarily. “We will endeavor to keep the platform operational until we find a suitable path forward,” the statement concluded.
