A recent report from Startupgraveyard.africa has revealed that 53 startups across seven African countries have shut down between 2013 and 2024, underscoring the difficulty that businesses face in the continent’s startup ecosystem. The report provides a stark reminder of the challenges faced by startups in Africa, with Nigeria emerging as the hardest-hit nation, accounting for nearly half of the closures.
The data highlights that 47% of the shuttered startups were Nigerian, reflecting both the country's role as a major hub for innovation in Africa and the significant obstacles that come with operating in the country. Among the affected industries, fintech, e-commerce, and blockchain were particularly prominent, comprising 17%, 15%, and 11% of the closures, respectively.
Several high-profile Nigerian startups have been affected. HerRyde, a ride-hailing service for women founded in 2022, shut down in May 2024. The company was launched to address safety concerns for women in Nigeria but failed to sustain operations despite its unique positioning in the market.
Quizac, an edtech platform founded in 2019, ceased operations in August 2024. The startup had aimed to gamify learning across different subjects but struggled to maintain user engagement in a competitive market.
The fintech sector, often heralded as a bright spot in Nigeria’s tech ecosystem, was not spared. Thepeer, a Nigeria-based API startup founded in 2021 that raised $2.30 million to power infrastructure for small and medium-sized fintech businesses, closed its doors in April 2024.
Chopnownow, a food delivery service that began in 2020, delivered its last meal in February 2024. The service, which operated in Lagos, faced intense competition from larger players in the food delivery market.
The wave of closures also swept through the cryptocurrency and blockchain sectors. BuyCoins Pro, a cryptocurrency trading platform founded in 2017, shut down in January 2024 after raising $1.20 million. Similarly, Vibra, a startup focused on driving the adoption of digital assets and blockchain technology across Africa, ceased operations in October 2023, despite securing $6 million in funding.
Other notable closures include Cova, a wealthtech startup that enabled users to track their assets, and Lazerpay, a blockchain-based payment gateway that allowed businesses to accept cryptocurrency payments. Both companies folded in early 2024.
Nigeria’s e-commerce sector also saw significant attrition. Jumia Food, a food delivery service that was part of the larger Jumia Technologies, ended its decade-long operation in December 2023. The platform had been a key player in the Nigerian e-commerce landscape but ultimately succumbed to market pressures.
DealDey, another e-commerce pioneer in Nigeria, shut down as early as January 2019. The company was founded in 2011 and raised $6 million to offer discounted goods and services but could not withstand the competitive and logistical challenges of operating in Nigeria.
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