After facing multiple unsuccessful fundraising attempts, Lazerpay, a Nigerian crypto-based fintech, has announced its decision to shut down its operations. The company's CEO, Njoku Emmanuel, disclosed in a statement on Thursday that Lazerpay was unable to secure the necessary funds to keep the business afloat.
In his statement, Emmanuel explained that the company had fought hard to stay in operation, but the fruitless fundraising efforts had led them to the point of shutting down. The company promised to settle all outstanding matters with stakeholders, and merchants were advised to withdraw their funds from the platform before April 30, 2023.
Lazerpay started its operations two years ago with the aim of promoting global adoption of cryptocurrencies. The fintech firm facilitated payments in stablecoins for over 3,000 businesses, including an off-ramp feature to enable merchants to convert crypto to fiat directly to their bank accounts in over 100 countries.
Last November, the company fired some of its employees to extend its operating runway after a lead investor backed out due to market conditions and disagreements on terms. The firing exercise happened even after the company's employees had agreed to take a pay cut, while the management team earned no salaries.
Lazerpay's shutdown comes as a significant blow to Nigeria's fintech industry, which has witnessed tremendous growth in recent years, driven mainly by innovations in payments, lending, and investment. The development is also a pointer to the need for more reliable and sustainable funding models for emerging fintech startups.
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