Nigerian fintech Gigbanc winds down operations citing fundraising struggles, pursues acquisition

For Paul Omoregie Okundaye, co-founder and CEO of Nigerian fintech startup Gigbanc, the past three years have been a wild ride. Founded in 2023, Gigbanc aimed to revolutionize cross-border payments for Africa's growing population of freelancers, creators, and digital entrepreneurs. However, as the startup's shutdown announcement reveals, even the most ambitious plans can fall victim to the harsh realities of fundraising in Africa's fintech sector.

African startups collectively raised $1.44 billion in the first half of 2026, a 1.4% increase from the previous year. However, this modest growth belies a more troubling trend: the number of disclosed funding deals has plummeted to 146, down from 252 in H1 2025. It's a pattern that emerges when tracing fundraising activity in the ecosystem: early-stage companies unable to raise fresh funding or reach profitability quickly enough either shut down or seek an acquirer as the next viable exit.

Gigbanc's woes are a stark reminder of this harsh reality. Despite its innovative approach to cross-border payments, the startup found itself struggling to secure sufficient capital to fund its operations. The high KYC and infrastructure costs needed for a B2C cross-border payment product were a major hurdle, making it difficult for the company to sustain its business. Although Gigbanc considered pivoting its business, it ultimately concluded that selling the company was the best option.

Gigbanc's shutdown is a cautionary tale for Africa's fintech sector, which has been touted as one of the continent's most promising growth areas. While the sector has seen significant investment in recent years, the harsh realities of fundraising in Africa are starting to sink in. As the startup's co-founder and CEO, Paul Omoregie Okundaye, noted, "We built Gigbanc with a simple belief: that Africa's talent deserves financial infrastructure worthy of its ambition." However, even the most ambitious plans can fall victim to the harsh realities of fundraising in Africa's fintech sector.

As the fintech sector in Africa continues to evolve, it's clear that startups will need to adapt to a changing fundraising landscape. With venture capital becoming increasingly scarce, startups will need to think creatively about how to secure funding and stay afloat. One potential solution is for startups to seek acquisition by established players in the sector, as Gigbanc is currently exploring. However, this raises questions about the long-term viability of the sector, and whether the current business model is sustainable.

I predict that we will see more African fintech startups seeking acquisition in the coming months and years, as the fundraising climate continues to tighten. This is a trend that will have significant implications for the sector as a whole, and will likely lead to a consolidation of players in the market. Whether this will ultimately lead to a more sustainable and innovative fintech sector in Africa remains to be seen.

As Gigbanc winds down its operations, the human cost of its shutdown becomes clear. Over 150,000 users across more than 30 countries will be affected by the shutdown, and will need to find alternative solutions for their cross-border payment needs. For Paul Omoregie Okundaye and the rest of the Gigbanc team, the shutdown is a painful reminder of the risks and challenges of building a fintech startup in Africa's tough fundraising climate.

Ultimately, Gigbanc's shutdown serves as a reminder that even the most ambitious plans can fall victim to the harsh realities of fundraising in Africa's fintech sector. As the sector continues to evolve, it's clear that startups will need to adapt to a changing fundraising landscape, and think creatively about how to secure funding and stay afloat.