2023 has been a challenging year for the African tech ecosystem, with a significant decline in venture capital funding compared to the previous record-breaking year.
This has unfortunately led to several promising startups closing their doors. Let’s take a look at five notable tech startups in Africa that shut down in 2023 and the factors that contributed to their closure:
Sendy (Kenya)
This logistics startup aimed to provide reliable and affordable delivery services across East Africa. Founded in 2014, Sendy enjoyed strong growth and partnerships with major e-commerce platforms. However, it faced competition from established players and struggled to expand beyond its core markets, leading to its closure in August 2023.
Bundle (Nigeria)
This cryptocurrency trading platform aimed to simplify the process of buying and selling digital assets in Nigeria. Founded in 2020, Bundle received support from Binance and other investors. However, it was unable to sustain its growth in the face of a challenging global crypto market and regulatory uncertainties in Nigeria, leading to its shutdown in September 2023.
54Gene (Nigeria)
This genomics company aimed to unlock the potential of African genomics for research and development. Founded in 2019, 54Gene gained recognition for its innovative work in mapping African genetic diversity. However, it faced internal challenges and external pressures, including the global economic downturn, ultimately leading to layoffs and a strategic pivot in July 2023.
The company eventually shut down in September 2023.
Dash (Ghana/Kenya)
Founded in 2019, the fintech Dash initially showed strong growth, attracting significant investment. However, it faced regulatory hurdles including controversy with accusations of its CEO embezzling funds. The company, facing financial pressure, ultimately shut down in September 2023.
Lazerpay (Nigeria)
This promising crypto and web3 company was unable to secure additional funding, ultimately leading to its closure in April. Its demise highlights the challenges faced by crypto startups in Africa, particularly navigating regulatory hurdles and securing funding.
The closure of these startups underscores the challenges faced by the African tech ecosystem in 2023. While the continent’s tech landscape still holds immense potential, factors such as reduced funding, intense competition, and regulatory hurdles are impacting the growth and sustainability of many promising ventures.
Despite the challenges, the African tech ecosystem remains vibrant and full of potential. With continued innovation, collaboration, and support from investors and policymakers, the continent’s tech scene can overcome its current hurdles and emerge stronger than ever.
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