A Ghanaian fintech business that aims to link bank accounts and mobile money wallets across Africa, Dash, has announced that it is ceasing operations. The news of the closure was first reported by WeeTracker.
Dash, a company established in 2019 by Prince Boakye Boampong, sought to provide interoperability between mobile wallets and bank accounts in Africa; its solution would have made transmitting money across Africa simple and effective.
In five years, the business raised $86.1 million and attracted high-profile investors. The second largest seed round for an African firm, it raised $32.8 million in 2021. Leading the round were Insight Partners and other investors. From October 2021 to October 2022, it raised more money through debt financing and convertible notes.
Dash began releasing startling growth figures in 2021. According to one publication, Dash stated that it had acquired a million users from Ghana, Nigeria, and Kenya and that it had handled transactions totalling $1 billion. In just five months, those figures showed a 5x increase in users.
At least two media expressed doubts about Dash’s stats and user base in February, and Prince Boakye Boampong was relieved of his CEO duties later that same month. An internal audit of Dash’s data revealed that Boampong had inflated and overstated the number of users. Kenneth Kinshua eventually took his place after being sacked, but by the time Kenneth Kinshua took over as CEO, the harm had already been done.
A subsequent audit of the business, according to the publication, revealed a gap of $25 million that was unaccounted for. With a reported burn rate of $500,000 per month and no income, Dash’s main issue appeared to be its expensive overhead as it had operations in five different countries.
Boampong reportedly made $50,000 each month and allegedly misappropriated at least $8 million, according to WeeTracker. There are allegations that the funds were used to purchase fancy vehicles and real estate. Boampong has not addressed any of the charges.
