5 African Startups that shut down in 2023

2023 has been a tough year for African startups. A global economic downturn led to a decrease in venture capital funding for startups worldwide, impacting African startups as well. Funding for African startups dropped significantly, with estimates suggesting a decline of 50% or more compared to 2022.

This decline made it difficult for startups to raise the capital they needed to grow and scale their businesses. This led to some startups shutting down. However, some of the startups shut down because of funds mismanagement.

Here are 5 notable startups that did not make to the end of 2023

1. Dash 🇬🇭

Dash was founded by Prince Boakye Boampong in 2019 and it was set up to make financial transactions across mobile money and traditional bank accounts for consumer and businesses very easy. It had raised about $86.1 million since inception. This was raised over five years and the last raise of $32.8 million was done in March 2022. As at the last raise, Dash was valued slightly over $200 million.

The CEO in 2022 claimed its total processing volume topped $1 billion and had acquired a million users from Ghana, Kenya and Nigeria even though this was disputed as its growth figures significantly differed from what it usually sees around how other consumer fintechs scale in Africa.

Even with the suspension of the founder early this year and the subsequent appointment of Kenneth Kinshua as the CEO to turn things around at Ghanaian startup, Dash, it was too late. It announced its shut down in October, 2023.

Dash, a Ghanaian fintech startup founded in 2019 by Prince Boakye Boampong; Funds raised before shutdown = $86.1 million

2. 54Gene 🇳🇬

54gene, a genomics startup, announced shutting down in September 2023 after raising $45 million in funding over four years. Founded in 2019, the company aimed to bridge the genetic research gap in Africa, where less than 3% of genetic material used in global pharmaceutical research originates. However, it has faced internal turmoil, including CEO changes and legal issues.

The company struggled financially, leading to salary cuts and layoffs. It attempted to diversify its revenue streams by entering the COVID-19 testing market, which initially generated substantial income. Still, the sustainability of this business model was short-lived, and a subsequent venture into molecular diagnostics proved costly and unsuccessful.

3. Whereismytransport 🇿🇦

WhereIsMyTransport, an eight-year-old transportation data company based in South Africa, announced in October 2023, that it was shutting down its operations due to unsuccessful attempts to secure new funding. Devin De Fries, the founder of this South African mobility startup, attributed the closure solely to the inability to raise additional funds.

The company had previously successfully raised over $27 million in funding, expanded its reach to 140 locations across 22 countries, and employed around 200 people.

WhereIsMyTransport specialised in mapping both formal and informal public transportation networks, utilising the collected data to enhance the overall public transportation experience. Their goal was to create safer and more accessible commuting options. The startup also provided data licensing services to governments.

4. Sendy 🇰🇪

Sendy announced in August 2023, that it was shutting down its operations and was in advanced discussions about an acquisition. According to Meshack Alloys, Sendy co-founder.

Founded in 2015 by Don Okoth, Evanson Biwott, Malaika Judd, Meshack Alloys, Sendy offered a logistics platform to make delivery processes simple, transparent, and secure. It provided an easy way for businesses to move goods, with thousands of companies using its platforms and APIs to sell and deliver goods to their consumers. Sendy’s mission is to empower people and businesses by making it easier to trade. Sendy had raised $26.5 million from inception from several investors.

5. Vibra 🇳🇬

It was reported that Vibra shut down operations in three African markets – Nigeria, Ghana, and Kenya – in October 2023. According to the report, Vincent Li, the CEO and co-founder of the African Blockchain Lab, stated that the business was currently undergoing a pivot. However, reliable sources including former employees who resigned from their jobs, stated otherwise.

The Africa-focused crypto platform founded in 2021, received $6 million in VC funding from investors like Lateral Frontiers and Everest Ventures.