Theeper, a Nigerian fintech startup, has announced its decision to shut down its operations nearly two years after raising $2.1 million in a Seed round. The founders of the company cited compliance issues and slow acceptance of wallets as viable payment options in Nigeria as the main reasons behind the decision.
The founders, Kosisochukwu Chike Ononye (CEO) and Michael Okoh (CTO), expressed their regrets in a statement released on Monday, noting that despite their mission to create innovative methods for transferring money between digital wallets and making payments directly from these wallets, they faced significant challenges.
Compliance issues hindered the company from launching key wallet providers or maintaining their services. Additionally, the overall acceptance of wallets as a payment option did not grow as rapidly as anticipated, leading to the need for extensive efforts in educating users about their services.
Faced with these challenges, the founders explored options such as a hard pivot, mergers and acquisitions, or returning capital to investors. Ultimately, they decided that returning remaining capital to investors was the best course of action.
The decision to wind down operations means that Theeper will be placed on maintenance mode temporarily while the platform is maintained until a new home for it is discovered. Despite the setback, the founders expressed gratitude for the journey and the support received from investors.
Theeper initially launched its beta in April 2021 with the aim of enabling users to send money directly between different fintech platforms, bypassing traditional bank accounts. The company later expanded its offerings to include solutions for businesses, such as Direct Charge and Checkout.
The startup had shown promising growth, achieving an average transaction growth of 161% month-on-month by the time of its $2.1 million Seed round closure in June 2022. However, challenges in educating users about the need for wallet interoperability and convincing them to adopt their solution posed significant hurdles.
Despite hints at expansion to other African countries like Kenya, South Africa, and Egypt, Theeper struggled to overcome the barriers posed by compliance issues and slow market acceptance.
Overall, Theeper’s decision to wind down operations reflects the challenging landscape faced by fintech startups in Nigeria and underscores the importance of addressing compliance issues and market readiness when launching innovative solutions.
