Nigerian Fintech Gigbanc Shuts Down After Three Years, Sets July 31 Withdrawal Deadline

Nigerian Fintech Gigbanc Shuts Down After Three Years, Sets July 31 Withdrawal Deadline

Nigerian fintech startup Gigbanc has announced that it will cease operations after three years in business, citing difficulties in raising fresh investment and the rising cost of running its platform.

The company, which specialized in cross-border payment solutions for freelancers, digital creators, remote workers, and businesses, disclosed that it is currently in acquisition talks with an undisclosed Nigerian fintech infrastructure provider as part of its exit strategy.

Customers Given Until July 31 to Withdraw Funds

Gigbanc has advised all customers to withdraw their legitimate account balances before July 31. Users are expected to convert any remaining balances into naira and transfer the funds to their local Nigerian bank accounts without incurring withdrawal charges.

According to the company's co-founder and CEO, Paul Omoregie Okundaye, the decision to shut down followed persistent funding challenges and the increasing cost of maintaining a business-to-consumer cross-border payments platform.

He explained that regulatory compliance requirements, particularly Know Your Customer (KYC) obligations, combined with infrastructure expenses, significantly increased operational costs. Although the company explored changing its business model, it was unable to secure the investment needed to support that transition, making a sale of the business the most viable option.

Served Over 150,000 Users Across 30 Countries

Founded in 2023, Gigbanc positioned itself as a digital banking platform for Africa's growing community of freelancers, remote workers, and online entrepreneurs earning foreign income.

Its services included:

• Multi-currency wallets supporting the US dollar, euro, and naira.
• Virtual dollar cards.
• Foreign exchange services.
• Bill payments.
• Local bank transfers to more than 200 Nigerian banks.

During its three years of operation, the company said it served more than 150,000 users across over 30 countries and processed transactions worth over ₦10 billion.

Beyond its financial products, Gigbanc also invested in community initiatives such as the Global Talent Fellowship, GigConnect, and GigSocial, aimed at supporting freelancers and remote professionals across Africa.

Funding Challenges Continue to Hit African Startups

Gigbanc's shutdown reflects a broader trend affecting Africa's startup ecosystem, where many early-stage technology companies are struggling to secure fresh funding as investors become increasingly cautious.

The company joins a growing list of African startups that have either shut down, downsized, or sought acquisitions due to tightening venture capital funding despite continued growth in the continent's digital economy.

Earlier, Nigerian digital lending startup Lidya also announced the closure of its Nigerian operations after nearly a decade in business, with analysts pointing to credit risks, difficult funding conditions, and unsustainable growth strategies as key factors.

The continued wave of startup closures highlights the increasing pressure on African technology companies to build sustainable business models in a challenging investment environment.

What lessons do you think African startups should learn from Gigbanc's shutdown? Is funding the biggest challenge, or should startups focus more on building sustainable business models from day one? Share your thoughts in the comments.