Nigerian fintech startup Gigbanc has announced it will cease operations after three years, citing a difficult fundraising environment and rising operating costs. The company, which provided cross-border payment solutions for freelancers, digital creators, remote workers, and businesses, is currently in acquisition talks with an unnamed Nigerian fintech infrastructure provider.
Customer Withdrawal Deadline Set for July 31
Gigbanc advised customers to withdraw their funds before closure. Users have until July 31 to convert account balances into naira and transfer all legitimate funds to local bank accounts at no charge.
Why Gigbanc Is Shutting Down
According to co-founder and CEO Paul Omoregie Okundaye, maintaining a business-to-consumer cross-border payments platform became increasingly expensive due to compliance requirements, particularly Know Your Customer (KYC) regulations, along with infrastructure expenses. The company explored changing its business model but could not secure the fresh investment needed to finance the transition. Management concluded that pursuing a sale was the most practical option.
Okundaye stated: "The combination of declining access to venture capital and the high cost of operating our business made it unsustainable to continue."
Broader Trend in Africa's Startup Ecosystem
Gigbanc's closure reflects a wider trend across Africa's startup ecosystem. Although African startups collectively secured about $1.44 billion in funding during the first half of 2026—a slight increase from the same period in 2025—the number of disclosed investment deals dropped significantly from 252 to 146. This indicates investors are becoming more selective, leaving many young companies with limited financing options.
Industry observers note that startups unable to raise additional capital or achieve profitability quickly are increasingly choosing between shutting down or seeking acquisition by larger firms.
Gigbanc's Reach and Services
Established in 2023, Gigbanc positioned itself as a digital banking platform for Africa's growing community of freelancers, remote workers, and online entrepreneurs earning foreign income. Its services included multi-currency wallets supporting the US dollar, euro, and naira; virtual dollar cards; foreign exchange services; bill payments; and local transfers to over 200 Nigerian banks.
Over its three-year operation, Gigbanc served more than 150,000 users across 30 countries and processed transactions worth over ₦10 billion. Beyond financial services, the company invested in community-building initiatives such as the Global Talent Fellowship, GigConnect, and GigSocial.
Recent Similar Shutdowns
Gigbanc's exit adds to a growing list of African startups forced to wind down. In May 2026, Nigerian-founded cross-border payments startup Chimoney shut down after failing to secure fresh investment. In March 2026, Y Combinator-backed cloud kitchen startup FoodCourt suspended operations after struggling to maintain a sustainable business model.
Acquisition Talks Underway
Okundaye expressed appreciation to employees, users, and the community, saying Gigbanc was founded on the belief that African professionals deserved world-class financial infrastructure. He added that although the business is ending, the company remains optimistic about Africa's digital economy while focusing on concluding ongoing acquisition negotiations.
