African Fintech Startup Zazuu Shuts Down Amid Funding Crunch

In a tough blow to the continent's vibrant startup scene, Zazuu, the innovative London-headquartered platform that connected users with top remittance services for Africa, has called it quits after a relentless battle to secure fresh capital.

Launched back in 2018 by a dynamic quartet—CEO Kay Akinwunmi, COO Korede Fanilola, CTO Tosin Ekolie, and CDO Tola Alade—Zazuu began humbly as a simple chatbot on Facebook and Telegram, dishing out daily foreign exchange rates to help everyday folks navigate the wild world of money transfers. It quickly blossomed into a full-fledged marketplace, showcasing more than 17 specialized remittance providers tailored for African corridors. The goal? To slash those eye-watering fees that often gobble up to 9% of transfers from Europe, sometimes spiking as high as 22%, and bring some much-needed clarity to a murky market.

The company hit some early highs. By August 2021, it snagged a $200,000 seed round from Launch Africa and ODBA, fueling its growth. The real momentum came in 2022 with a hefty $2 million infusion from a powerhouse lineup: Launch Africa, Founders Factory Africa, ODBA, HoaQ, music star Tinie Tempah, IrokoTV's Jason Njoku, and a cadre of sharp-eyed angel investors like Babs Ogundeyi. At its peak, Zazuu boasted nearly 100,000 users who turned to its handy search-and-compare tool, proudly touting Africa's lowest remittance rate at just 1.5%.

But the funding well ran dry, and despite scouring every possible avenue, the team couldn't land the lifeline they needed. In a heartfelt LinkedIn announcement, Zazuu shared the hard truth: "We explored every option before making this decision." Echoing earlier chats with industry watchers, Akinwunmi had opened up about the grind—convincing customers and partners alike on the platform's value, while grappling with steep licensing hurdles and compliance demands that felt like climbing Everest in flip-flops.

This isn't just one startup's swan song; it's a stark reminder of the gathering storm over African tech. With investments dipping below $2.8 billion through late 2023—half of what poured in the year before—many ventures are hitting the brakes. Zazuu joins a somber list, including crypto player Lazerpay, which folded in April after its own cash woes, and South Africa's WhereIsMyTransport, a mobility disruptor that shuttered its operations in October.

For the founders, it's a pivot point. While Zazuu's story wraps up, its push for transparency and fierce competition in remittances leaves a blueprint for what's next. In a space where every dollar sent home counts double, this closure underscores the urgent call for smarter funding flows to keep Africa's fintech fire burning bright.