Zazuu, a London-based, Africa focused fintech has shut down, citing lack of funding.
Zazuu is a fintech marketplace for cross-border payment networks in Africa, built for African remittance companies.
Before it’s closure, Zazuu had raised over $2 million from investors like Launch Africa and Founders Factory.
Announcing the closure via a LinkedIn post, the company said, “We explored every option before making this decision.”
Three others co-founded Zazzu 1n 2018 with Kay Akinwunmi (CEO); Korede Fanilola (COO), Tosin Ekolie (CTO), and Tola Alade (CDO).
It raised a $200,000 seed round from Launch Africa and ODBA in August 2021.
A year later, the company raised $2 million from Launch Africa, Founders Factory Africa, ODBA, HoaQ, Tinie Tempah, Jason Njoku, Babs Ogundeyi, and other angel investors.
Zazuu started as a Facebook and Telegram chatbot informing users of daily FX rates. It evolved into a full-blown aggregator and has listed more than 17 Africa-focused remittance providers on its platform.
The startup also said that almost a hundred thousand users had used its Search and Compare service to find the best rates for sending money to Africa.
Zazuu ran its operations based on the belief that a marketplace where customers could choose the cheapest remittance option could help lower prices by bringing transparency and increasing competition.
It had the lowest rate anyone transferring money to Africa could get on the platform, at 1.5% in 2002
Highlighting other challenges faced by the startup, Adewunmi listed 2 major challenges
- explaining to customers and potential partners what they were trying to build.
- licensing requirements and the costs attached to them.
Zazuu’s shutdown adds to the list of startups shutting down this year for lack of funding.
Lazerpay, a crypto startup shut down in April also blaming a lack of funding for its closure.
WhereIsMyTransport, a South African mobility startup, also shut down in October citing an inability to raise new funding.
Research shows that the rate off funding has significantly dropped this year.
At the end of October, African startups had raised less than $2.8 billion this year. This is less than 50% of the $6 billion raised last year.