African Remittance Marketplace Zazuu Shuts Down Amid Funding Struggles

The London-based fintech startup, Zazuu, has shut down operations due to a lack of funding. This news comes as a blow to the African fintech scene, which has seen a wave of startups struggle to secure funding in recent months.

A Brief History of Zazuu

Founded in 2018 by Kay Akinwunmi, Korede Fanilola, Tosin Ekolie, and Tola Alade, Zazuu initially began as a chatbot on platforms like Facebook and Telegram, providing users with daily foreign exchange rates. Over time, it evolved into an aggregator, listing over 17 remittance providers focused on Africa.

Zazuu aimed to revolutionize cross-border payments in Africa. It built a marketplace that connected users with various remittance providers, allowing them to compare fees and exchange rates. The startup raised over $2 million from investors like Launch Africa and Founders Factory Africa.

Despite its innovative approach and potential to disrupt the African remittance market, Zazuu faced significant challenges in securing funding. The global economic downturn and tightening of investment markets have impacted the African tech ecosystem, making it harder for startups to raise capital.

The Future of African Fintech

Zazuu’s closure is not an isolated incident. In recent times, African tech startups have been struggling to stay afloat amid reduced investment. By October 2024, startups on the continent raised less than $2.8 billion, a huge drop from $6 billion the previous year.

Other notable closures include crypto startup Lazerpay in April and South African mobility company WhereIsMyTransport in October 2023. Both startups cited an inability to secure new funding as the primary reason for shutting down.

Zazuu’s departure from the fintech ecosystem tells only a part of the story of the critical funding challenges many startups face, even with innovative solutions that address pressing needs.