Nigerian Fintech Gigbanc Shuts Down Amid Funding Woes

After three years of operation, Nigerian fintech firm Gigbanc has announced it is winding down its services. The company, which focused on providing cross-border payment solutions for freelancers, creators, and remote workers, cited a challenging venture capital environment as the primary reason for its closure. This development underscores the increasing difficulty for early-stage African startups to secure necessary funding in the current economic climate.

Gigbanc, founded in 2023, aimed to empower Africa's burgeoning digital economy by offering financial infrastructure tailored to international income earners. The platform facilitated multi-currency wallets (USD, EUR, NGN), virtual USD cards, currency exchange, and seamless local payouts to over 200 Nigerian banks. During its operational period, the company reported serving more than 150,000 users across 30 countries and processing over ₦10 billion (approximately $7.2 million) in transactions. Beyond its core services, Gigbanc also invested in community building through initiatives like the Global Talent Fellowship and GigConnect.

The decision to cease operations was not made lightly. According to co-founder and CEO Paul Omoregie Okundaye, the company explored various avenues, including pivoting its business model. However, the inability to secure sufficient capital to support a transition, coupled with significant operational hurdles, led management to pursue an acquisition as the most viable exit strategy. Gigbanc is reportedly in acquisition discussions with an undisclosed Nigerian fintech infrastructure provider. Customers have been advised to withdraw their funds by July 31st.

Okundaye highlighted the substantial costs associated with maintaining a Business-to-Consumer (B2C) cross-border payment product, particularly the Know Your Customer (KYC) and infrastructure expenses, as key factors contributing to the business's sustainability challenges. "The high KYC and infrastructure costs needed for a B2C cross-border payment product were very challenging," he stated.

The shutdown of Gigbanc aligns with a broader trend observed in the African startup ecosystem. Data from the first half of 2026 indicates that while African startups collectively raised $1.44 billion, a marginal 1.4% increase year-over-year, the number of disclosed funding deals significantly decreased to 146, down from 252 in the same period of 2025. This contraction in deal volume suggests a more selective investment landscape, where profitability and robust unit economics are increasingly scrutinized, pushing companies unable to achieve these metrics towards closure or acquisition.

This situation is not unique to Gigbanc. Other Nigerian startups have recently faced similar headwinds. In May, Chimoney, a fintech specializing in cross-border payment infrastructure, also ceased operations due to funding difficulties. Earlier in March, FoodCourt, a cloud kitchen startup, paused its operations after struggling to maintain its business model. These instances collectively paint a picture of a maturing, yet challenging, funding environment for African tech ventures, particularly those in the early stages or operating with high overheads.