By 
Nigerian fintech startup Gigbanc has announced plans to wind down its operations after three years, citing a challenging fundraising environment and rising operational costs that have made its business model increasingly difficult to sustain.
The company, which provides cross-border payment solutions for freelancers, creators, remote workers and businesses, disclosed that it is currently in acquisition discussions with an undisclosed Nigerian fintech infrastructure provider as it seeks an alternative exit strategy.
Gigbanc has advised customers to convert their wallet balances to naira and withdraw eligible funds to local bank accounts free of charge before the July 31 deadline as part of its orderly shutdown process.
The closure reflects broader funding pressures facing Africa’s startup ecosystem, where early-stage technology companies are finding it increasingly difficult to secure fresh investment despite modest growth in overall venture capital inflows.
While African startups collectively attracted approximately $1.44 billion in funding during the first half of 2026, the number of completed investment deals declined significantly, highlighting a more selective investment landscape that has left many early-stage businesses struggling to raise capital or achieve profitability.
Commenting on the decision, Gigbanc Co-founder and Chief Executive Officer, Paul Omoregie Okundaye, said the company was established with the vision of providing world-class financial infrastructure for Africa’s growing community of digital professionals.
“We built Gigbanc with a simple belief: that Africa’s talent deserves financial infrastructure worthy of its ambition. Looking back, we are incredibly proud of what our team, our community and our users achieved together,” he said.
According to Okundaye, the company also faced mounting Know Your Customer (KYC) compliance expenses and infrastructure costs associated with operating a business-to-consumer cross-border payments platform.
He noted that although the company explored the possibility of pivoting its business model, it was unable to secure the funding required to support that transition, making a sale of the business the most practical option.
Founded in 2023, Gigbanc positioned itself as a digital banking platform serving Africa’s expanding freelance and remote workforce. Its services included multi-currency wallets supporting the naira, US dollar and euro, virtual dollar cards, foreign exchange services, bill payments and local transfers to more than 200 Nigerian banks.
During its operations, the fintech said it served over 150,000 users across more than 30 countries and processed transactions valued at over ₦10 billion.
Beyond its payment services, Gigbanc invested in initiatives aimed at supporting Africa’s digital workforce through community-building programmes, including the Global Talent Fellowship, GigConnect and GigSocial.
The company said its immediate priority is completing the ongoing acquisition process while ensuring customers conclude all outstanding transactions before operations officially cease.
“While this chapter comes to a close, we remain deeply optimistic about the future of Africa’s digital economy and proud of the role Gigbanc played in shaping it,” Okundaye added.
Gigbanc joins a growing list of African technology startups that have either ceased operations or pursued acquisitions amid tighter funding conditions. The trend reflects increasing pressure on venture-backed startups to demonstrate sustainable business models as investors adopt a more cautious approach to early-stage funding.
Comments