By RARZACK OLAEGBE
My friend is an exceptionally talented techie head. She has a mobile money product. She has proven the target addressable market (TAM). There is a market in the target addressable market. As proof, her product has gained traction in three northern states. She has successfully onboarded several merchants in the north over the past two years. But she has not been able to scale it. Shake it down. Sweat it up. Because she does not have the deep pockets of an MTN.
Waiting for another time to strike
But she got the attention of some investors. A few of the investors have not removed the beam from their eyes to see the unicorn in the product. Some are thawing. Others are stalling. The failure of some earlier fintech start-ups is staring them in the eye. Therefore, she has moved into a safe mode. Not her, but her mobile money product. The product is in a safe. She has locked it away. She is waiting to put it in a safe. She has closed her office. Paid off her employees. Quietly, she is waiting for another time. To strike again. Or sell out.
Technology alone is insufficient
Similarly, Thepeer, a Nigeria-based API start-up that raised a $2.1 million seed round in June 2022, has folded up. The investors would get what they invested. The business could not scale. In a statement, the three-year-old start-up said it closed shop after realising its exceptional technology alone was insufficient. The firm had a compliance challenge.
It could not accept wallets as a viable payment option. Therefore, it did not grow as rapidly as ‘’we had hoped’’. The founders said. According to Crunchbase, Thepeer had raised $2,320,000 from investors. One of the investors is Paystack co-founder, Ezra Olubi. Other investors are RaliCap, Timon Capital, BYLD Ventures, Musha Ventures, Sunu, and Uncovered Fund.
Maintenance mode
The peer used its APIs to provide an alternative network where fintechs and businesses can embed different sets of products into their applications and websites for customers to move funds easily. The company had hoped to connect wallets across over 400 fintechs across the continent to enable payments.
Kosisochukwu Ononye and Michael “Trojan” Okoh co-founded Thepeer. The duo had hoped the business would power infrastructure for small to medium-sized fintech businesses. In 2022, its monthly transaction volume reached millions of dollars. It had an average month-on-month transaction growth of 161%. It was going to expand to Kenya, South Africa, and Egypt. Overall, its hopes and growth did not align with the market’s needs.
Therefore, like my friend, Thepeer founders have decided to place the product in maintenance mode. They maintain the platform for as long as possible until they find ‘a new home.”
Scar is a badge
Thepeer was the second start-up to return funds to investors in 2024. Cova collapsed. Klump slumped. It is challenging to build fintech on the continent. My friend and others wear their scar like a badge.
READ ALSO:
In Dutse, Tinubu reaffirms determination to overcome insecurity
Police confirm escape of two Kogi prison inmate, launch manhunt
OAU beats LASU to win LEAP Africa Youth Leadership Debate
Troops repel BHT/ISWAP attack in Adamawa, kill two terrorists
Arapaja at 68: He’s a brave citizen, pride of Oyo State -Alli
INEC’s 1.6m voter register clean-up: A good start, but not yet uhuru
CJN swears in 2027 election petition tribunal members
Shell commends oil industry reforms as key to unlocking more barrels
Ahead 2027 polls: INEC removes 1.6m invalid voter records
Police rescue six-year-old kidnap victim, arrest two suspects
INEC yet to receive court order on ADC, Tinubu, says Amupitan
Police rescue six-year-old kidnap victim, arrest two suspects
Akodu is new Lagos NUJ chair, pledges leadership with humility
Deepening the Service Attitude Conversation in Nigeria (2)
Aregbesola writes INEC: Defer any change in ADC leadership
Boiling Point: Olota, Babarinsa, Mustapha decry proliferation of Oba