Nigerian Fintech Startup Gigbanc Shuts Down After Three Years

Gigbanc, a fintech company that developed cross-border payment solutions for freelancers, creators, and remote workers in Africa, is winding down operations after only three years. The decision comes as the startup faces increasing challenges raising venture capital.

The company announced it’s in acquisition talks with an undisclosed Nigerian fintech infrastructure provider while advising customers to convert balances by July 31st.

Funding Climate Tightens for African Startups

This shutdown mirrors a broader trend across Africa where early-stage companies are struggling to secure funding. While total investments rose slightly to $1.44 billion in the first half of 2026 (up 1.4% from the previous year), the number of deals plummeted by 42% to just 146.

The pattern shows that startups unable to achieve profitability or secure new funding quickly are increasingly forced to either shut down or seek acquisition as their only viable exit options.

Why Gigbanc Couldn’t Sustain

According to CEO Paul Omoregie Okundaye, the challenging fundraising environment combined with high operational costs—particularly those associated with regulatory compliance (KYC) and infrastructure for cross-border payments—proved unsustainable.

“The high KYC and infrastructure costs needed for a B2C cross-border payment product were very challenging,” Okundaye explained to TechCabal.

The company considered pivoting but ultimately determined that selling the business was the best path forward.

What Gigbanc Achieved in Three Years

Despite its short lifespan, Gigbanc served over 150,000 users across 30+ countries, processing more than ₦10 billion ($7.2 million) in payments during its lifetime.

The platform offered multi-currency wallets with virtual cards, foreign exchange conversion, and bill payment capabilities—addressing a critical need for Africa’s growing digital economy.

Gigbanc also invested in building communities through initiatives like the Global Talent Fellowship and GigConnect, recognizing that financial infrastructure alone isn’t enough to support freelancers and creators.