The Nigerian fintech startup Thepeer, which ceased operations in April 2024, has announced plans to return approximately $350,000 to investors, despite having remaining runway.
The closure of Thepeer was attributed to challenges in achieving product-market fit, according to the founders.
Established in 2021, Thepeer aimed to facilitate seamless money transfers by connecting wallets across various businesses.
While the concept held promise, the startup encountered difficulties in user acquisition and integration with businesses.
Despite processing over $500,000 in transactions during the first three quarters of 2023, the company struggled to generate significant revenue, earning less than $1,000.
The responsible use of investor funds emerged as a priority for African startups, leading Thepeer’s founders to opt for returning capital, representing approximately 15% of the $2.3 million raised.
This decision diverged from the common practice of persisting with operations, even in adverse conditions, potentially risking the complete loss of investor funds.
The challenges faced by Thepeer encompassed various factors. The African market may not yet be conducive to large-scale wallet-to-wallet transactions, while compliance issues and inconsistent support from fintech partners further hindered progress.
Additionally, stiff competition from established payment companies like Paystack and Flutterwave posed significant obstacles.
