Zazuu, a London-based fintech marketplace for African remittance services, has officially shut down, citing an inability to secure further funding. The startup, which raised over $2 million from investors including Launch Africa and Founders Factory, made the announcement in a LinkedIn post, stating:
“We explored every option before making this decision.”
The shutdown marks another casualty in Africa’s struggling tech ecosystem, where startups are grappling with a global funding slowdown.
Zazuu’s Journey: From Chatbot to Fintech Marketplace
Founded in 2018 by Kay Akinwunmi (CEO), Korede Fanilola (COO), Tosin Ekolie (CTO), and Tola Alade (CDO), Zazuu started as a simple Facebook and Telegram chatbot, helping users track daily FX rates for remittances. It later evolved into a full-fledged marketplace, aggregating services from 17 Africa-focused remittance providers to help customers find the cheapest money transfer options.
The fintech was built on the idea that increasing transparency and competition in the remittance space could help reduce Africa’s high transaction fees, which average 9% from Europe and can reach up to 22% in some cases. By comparison, Zazuu offered rates as low as 1.5% through its Search and Compare service, which was used by nearly 100,000 customers before its closure.
Funding History and Challenges
Zazuu secured its first funding round in August 2021, raising $200,000 from Launch Africa and ODBA. In 2022, it raised $2 million from Launch Africa, Founders Factory Africa, ODBA, HoaQ, Tinie Tempah, Jason Njoku, Babs Ogundeyi, and other angel investors.
Despite early success, regulatory barriers and licensing costs became significant hurdles. Akinwunmi noted in a 2022 interview that explaining the concept to both customers and partners was another challenge.
With investor interest in African fintech waning in 2024, Zazuu struggled to raise additional funding, ultimately leading to its closure.
The Broader Funding Crisis in Africa’s Tech Ecosystem
Zazuu’s shutdown is part of a larger downturn in Africa’s startup funding landscape. By October 2024, African startups had raised less than $2.8 billion, compared to $6 billion in 2023. Several high-profile startups have already collapsed, including:
•Lazerpay (crypto payments) – shut down in April 2024 due to lack of funding.
•WhereIsMyTransport (South African mobility startup) – shut down in October 2024 after failing to secure investors.
The current global venture capital slowdown has hit African startups particularly hard, with many struggling to survive without continuous external investment.
The Future of African Remittance and Fintech Startups
Zazuu’s closure raises questions about the sustainability of remittance-focused fintechs in Africa. With increasing regulatory pressures, licensing costs, and investor caution, many startups may need to rethink their business models or seek alternative funding sources to stay afloat.
Despite this, Africa’s remittance market remains a multi-billion-dollar industry, and established players like LemFi, Chipper Cash, and Flutterwave continue to dominate the space. However, the collapse of Zazuu underscores the harsh realities of the current investment climate and the challenges facing emerging fintech startups in Africa.
