...By Solomon Thomas for TDPel Media.
Lazerpay, a Nigerian crypto and Web3 company, has announced that it is shutting down its operations after failing to raise funds in a funding round.
The decision was made after the company’s lead investor pulled out, leaving it unable to secure the necessary funding.
The startup, which helps businesses accept stablecoin payments from customers globally, had previously announced layoffs in November 2022 for the same reason.
In a statement released on Twitter by the founder and CEO, Emmanuel Njoku, Lazerpay expressed gratitude for the connections it has made and the impact its platform has had in the crypto ecosystem.
The company has now shifted its focus to ensuring a seamless transition for its users by resolving any outstanding issues.
Merchants have been advised to use the bank or crypto payout options and withdraw their funds from the platform before April 30, 2023.
Lazerpay is also inviting companies to make offers to purchase its intellectual property.
Lazerpay was co-founded by Njoku, Abdulfatai Suleiman, and Prosper Ubi in October 2021 to drive crypto adoption globally.
According to Njoku, the startup has onboarded over 3000 businesses and has done over $1 million in transactions so far.
The shutdown of Lazerpay is another upheaval in the African crypto space, following the recent announcement by Bitcoin peer-to-peer marketplace Paxful that it would cease operations.
However, some crypto payment startups in the continent are still thriving, such as Nairaex, which is an active Bitcoin exchange in Nigeria, serving as a medium for Nigerian traders to purchase or sell the Naira currency for cryptocurrency with convenience.
Overall, the shutdown of Lazerpay highlights the challenges that startups face in raising funds in the crypto industry, particularly in emerging markets like Africa.
It also underscores the importance of having a strong and sustainable funding strategy in place to ensure the longevity of startups in the space.