Nigerian crypto payment startup Lazerpay has announced that it is shutting down due to a lack of funding. The company had been struggling since downsizing its workforce in November 2022. Founded in 2021, Lazerpay developed an API that allowed developers to integrate crypto payments into their platforms, enabling merchants to accept payments in various currencies. Its mission was to promote financial inclusion and interoperability.
In a recent Twitter update, Lazerpay founder Njoku Emmanuel stated that the company had been trying to keep going for as long as possible, but it had now reached a point where it needed to shut down. Customers have been advised to withdraw their funds before Lazerpay officially ceases operations by April 30, 2023. In its 17 months of operation, the company served more than 3,000 businesses. Lazerpay was backed by a number of investors, including Paystack's Shola Akinlade and Nuwa Capital.
The closure of Lazerpay is just one example of the ongoing challenges faced by crypto startups in Africa.
These companies have struggled to secure adequate funding, and many have had to shut down as a result. The collapse of FTX, one of the world's largest crypto exchanges, has had a particularly significant impact on the industry in Africa. Nigerian crypto startup Nestcoin had to lay off staff last year due to funding issues, and Fluidcoins, another Nigerian crypto exchange, was acquired by Bitfinex in March 2023 after failing to raise capital to continue operations.
Despite the shutdown, Lazerpay has said that it is open to selling its IP to anyone interested in developing future crypto payment solutions.
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