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-funvp9A2jf.jpg "Thepeer Co-Founders, Michael Okoh and Chike Onony")
Nigerian API startup Thepeer has closed its doors, returning the remaining capital to investors after failing to achieve its growth goals.
Launched in 2021, the company aimed to connect wallets across African fintech platforms for seamless money movement.
Thepeer's statement cited challenges in scaling their "unique service." Compliance issues and slower-than-anticipated adoption of digital wallets hampered their ambition to connect over 400 fintechs.
Thepeer's closure marks the second such instance in 2024 for Nigerian fintech startups, following wealth tech company Cova's similar fate. These developments highlight the complexities of building successful fintech businesses in Africa.
Despite raising a pre-seed round of $220,000 in 2021 and a $2.1 million seed round in 2022, Thepeer struggled to find market traction. Investors included prominent names like Paystack co-founder Ezra Olubi and Edenlife CTO Prosper Otemuyiwa.
The company reported impressive initial growth, boasting millions in monthly transaction volume and 161% month-on-month growth. They even planned expansion into Kenya, South Africa, and Egypt. However, Thepeer ultimately conceded a disconnect between its product and market needs.
To preserve the platform for now, the founders placed it in maintenance mode while seeking a "new home" for their technology.
