Nigerian Fintech Gigbanc Shuts Down Amid Fundraising Struggles
Quick Reads:
- Gigbanc winds down operations after three years, citing a difficult fundraising environment.
- The Lagos-based fintech served over 150,000 users across 30+ countries.
- Customers have until July 31 to withdraw funds to Nigerian bank accounts for free.
- The startup is in talks with an undisclosed Nigerian fintech infrastructure provider.
- It processed more than ₦10 billion ($7.2 million) in payments during its lifetime.
Nigerian fintech Gigbanc winds down operations this month, becoming the latest African startup to shut its doors as venture funding dries up for early-stage companies. The Lagos-based company, which built cross-border payment tools for freelancers, creators, and remote workers, confirmed the closure after three years of operation, pointing to a tough capital-raising climate as the main driver.
Founded in 2023, Gigbanc positioned itself as a neobank for Africa’s growing army of digital earners, offering multi-currency wallets in dollars, euros, and naira, virtual USD cards, and payouts to more than 200 Nigerian banks. At its peak, the platform served over 150,000 users spread across more than 30 countries, moving more than ₦10 billion ($7.2 million) in payments over its lifetime.
Rather than shutting down cold, Gigbanc says it is in acquisition talks with an undisclosed Nigerian fintech infrastructure provider. Customers have until July 31 to convert their balances to naira and withdraw non-fraudulent funds to local bank accounts free of charge.
Co-founder and CEO Paul Omoregie Okundaye said the team built Gigbanc on the belief that Africa’s talent deserved financial infrastructure that matched its ambition, adding that the company explored a pivot but could not raise enough capital to fund the transition, which left a sale as the most viable path forward.
Beyond the funding drought, Gigbanc pointed to the heavy cost of Know Your Customer (KYC) compliance and infrastructure needed to run a B2C cross-border payments product as a major strain on the business.
The news that Gigbanc winds down operations adds to a growing list of African startups forced into shutdowns or distressed sales this year. In May, Chimoney, another Nigerian-founded cross-border payments startup, ceased operations after failing to raise fresh capital. In March, Y Combinator-backed cloud kitchen FoodCourt paused operations for similar reasons. Industry data shows African startups raised $1.44 billion in the first half of 2026, only a marginal rise from the previous year, while the number of disclosed funding deals fell sharply from 252 to 146 over the same period, underscoring how selective investors have become.
