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    HomeAnalysis & OpinionsTracking Startup Failures in Africa: From Millions in Funding to Silent Shutdowns

    Tracking Startup Failures in Africa: From Millions in Funding to Silent Shutdowns

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    While the startup ecosystem in Africa is often riddled with excitement, a more sobering reality is emerging — the collapse of once-promising ventures that drew the attention of investors and entrepreneurs. Despite raising millions from both local and international sources, several African startups have quietly closed their doors in recent years, exposing the difficulties of creating sustainable businesses in the region. From Egypt’s social commerce innovator Brimore to Nigeria’s ambitious logistics platform Africa Courier Express, these companies initially appeared ready to change their respective markets. Yet, behind the headlines of substantial funding rounds, these failures highlight the significant challenges startups face in navigating the continent’s unique market dynamics, regulatory obstacles, and infrastructure shortcomings. Their tales of ambition, struggle, and eventual closure provide vital insights into the unpredictable landscape of African entrepreneurship — where success can be as fleeting as it is celebrated.

    Brimore (Egypt)

    Brimore, founded in 2017 by Ahmed Sheikha, Mohamed Abdulaziz, Mahmoud Refaay, and Hassan Hisham, aimed to revolutionize social commerce in Egypt. The platform created a parallel distribution network by connecting small local manufacturers with a network of freelance sales agents, allowing emerging brands to reach consumers across Egypt’s 27 governorates. Through data analytics and grassroots sales channels, Brimore helped these manufacturers access markets they would otherwise struggle to reach.

    Despite raising over $30 million from prestigious investors, including the International Finance Corporation, Endure Capital, Fawry, Flourish Ventures, Endeavor Catalyst Fund, and Algebra Ventures, Brimore ceased operations. The death of co-founder Hassan Hisham in a tragic car accident in April 2023 was a significant loss for the company, which struggled to maintain momentum in the highly competitive Egyptian e-commerce market.

    La Reina (Egypt)

    La Reina, founded in 2016 by Ghada El-Tanawy and Amr Diab, specialized in technology-driven logistics and cloud fulfillment solutions. The platform provided a comprehensive set of logistics services, including inventory receiving, warehousing, order processing, and last-mile delivery, offering businesses scalable and efficient delivery systems across Egypt.

    Despite its innovative approach, La Reina shut down in 2022, after raising more than $1 million from investors, including 500 Startups and Algebra Ventures. 

    Redbird (Ghana)

    Launched in 2017 by Patrick Beattie, Andrew Quao, and Edward Grandstaff, Redbird aimed to address gaps in Ghana’s healthcare system. The startup offered health monitoring services for patients with chronic diseases, enabling them to track their conditions through convenient, accessible testing options without enduring the long wait times common at overburdened hospitals.

    Redbird raised over $2 million in funding, with notable backing from South Africa’s Newtown Partners. However, despite its potential to improve healthcare delivery, the startup closed its doors, a casualty of the challenging healthcare infrastructure in Ghana and the difficulties of scaling medical technology solutions in emerging markets.

    Milezmore (Egypt)

    Milezmore, a spin-off from the social commerce platform Brimore, was founded in 2021 by Ahmed El Attar. The company developed a logistics system that specialized in inventory management, order processing, and last-mile delivery, supporting e-commerce operations across Egypt.

    After raising $5 million in 2022 from investors including Algebra Ventures, Milezmore followed Brimore’s fate and shut down operations. The intertwined failures of Brimore and Milezmore underscore the logistical and operational challenges in scaling tech-driven fulfillment services across Egypt, particularly in the face of rising competition and economic instability.

    TalentBase (Nigeria)

    Founded in 2016 by Ozioma Obiaka and Chika Uwazie, TalentBase sought to transform human resources management in Africa by offering a platform that automated employee information management tasks, such as payroll calculations, leave tracking, and performance monitoring. The startup’s ambition was to provide small and medium-sized businesses with a comprehensive HR solution.

    TalentBase raised more than $700,000 but ultimately collapsed under the weight of scaling difficulties and market competition. The platform’s demise highlights the challenges of sustaining HR tech solutions in Nigeria, where traditional HR practices and infrastructure gaps present formidable hurdles.

    Brantu (Egypt)

    Brantu, founded in 2016 by Fredrik Granstrom, Mohamed Rizk, and Alexander Jöndell, operated as a digital fashion marketplace. The startup aimed to streamline the fashion retail experience for consumers and brands by offering an array of women’s apparel with a mobile-first shopping platform that boasted appealing content, fast delivery, and easy returns.

    Despite raising over $3 million from investors like Sawari Ventures, Brantu closed its doors after facing intense competition from global and local e-commerce platforms. The competitive pressures, combined with operational challenges, led to Brantu’s quiet exit from the market.

    Tulaa (Kenya)

    Founded in 2016 by Hillary Miller-Wise, Tulaa aimed to empower Kenya’s rural farmers by providing them access to affordable financing and a marketplace for their products. The platform leveraged mobile technology and agent networks to connect suppliers, financial institutions, and farmers, offering tools for better decision-making and improved market access.

    Tulaa raised over $600,000 from investors such as Compass Venture Capital, but the company folded in 2020. Its closure highlights the difficulties of sustaining agricultural fintech platforms in Africa, where fragmented supply chains and financial exclusion continue to pose significant barriers.

    Africa Courier Express (Nigeria)

    Founded in 2013 by Hilary Achebe, Ercin Eksin, and Tunde Kehinde, Africa Courier Express aimed to bridge the gap between businesses and consumers with a technology-enabled logistics platform. The company offered same- and next-day delivery options, serving as a key enabler of e-commerce growth in Nigeria.

    After raising millions from investors, including EchoVC, the startup ceased operations in 2023. The company’s failure points to the deep-rooted challenges of logistics in Nigeria, where infrastructure constraints and high operational costs make scaling a formidable task.

    Bongalow (Nigeria)

    Founded in 2019 by Abdulrahman Atta, Samuel Haruna, and Kelechi Nwokocha, Bongalow was a loan and mortgage origination platform designed to empower lenders and brokers to manage loans and mortgages more efficiently. The platform helped streamline processes between consumers and banks, facilitating mortgage origination and consumer loans.

    Despite raising over $500,000 from investors, including Kepple Africa Ventures, Bongalow shut down in 2022. The collapse of Bongalow underscores the difficulty of scaling fintech solutions in Nigeria’s highly regulated financial sector.

    Cassbana (Egypt)

    Cassbana, founded in 2020 by Haitham Nassar, Mostafa Barakat, and Mohamed Tarek, sought to build financial identities for Egypt’s underserved populations through machine learning and artificial intelligence. The platform provided micro-lending services to small businesses and individuals by analyzing behavior patterns to assess creditworthiness.

    Despite raising $1 million, Cassbana ultimately shut down. Its failure highlights the complexities of extending microfinance services in underserved markets, where access to reliable data and repayment challenges can make financial inclusion a difficult goal to achieve.

    OnePay (Morocco)

    OnePay, founded in 2020, aimed to facilitate online electronic transactions for businesses through an aggregator platform for payments and value-added services. The company helped businesses in Morocco grow their digital presence and increase turnover through more efficient payment solutions.

    After raising around $400,000 from Maroc Numeric Fund, OnePay shuttered in 2022, a testament to the competitive pressures within the fintech sector and the challenge of gaining traction in a fragmented market.

    Teliman (Mali)

    Founded in 2018 by Hawa Traore, Abdoulaye Maiga, Elay Maiga, and Thomas Gajan, Teliman was a mobility startup providing on-demand motorcycle taxi services in Bamako, Mali. Teliman differentiated itself by offering insured and GPS-equipped motorcycles along with professional drivers.

    Despite raising over $1 million, including from Toyota Tsusho’s Mobility 54, Teliman folded in 2023, illustrating the difficulties of maintaining operations in regions where infrastructure for safe and efficient transport remains underdeveloped.

    Vigon Systems (Morocco)

    Founded in 2014 by Yassine Arfane, Vigon Systems provided IT consulting for the hotel industry, specializing in broadband access, cable TV, telephony, and security systems for hotel chains. Despite raising investments from 212Founders, Vigon Systems ceased operations in 2022.

    The startup’s demise points to the challenges faced by service-oriented technology companies in markets like Morocco, where scaling and maintaining competitive advantages in a rapidly evolving tech landscape can be arduous.

    Oga Hotels — Nigeria

    Founded in 2015 by Andrew Airelobhegbe and Godstime Asine, Oga Hotels was a developer of an events booking platform that allowed users to find and book venues for weddings, birthday parties, and corporate events, offering both online and offline options. The company aimed to simplify the venue booking process, providing a fast and reliable solution for users across Nigeria. The startup received funding from notable investors, including Ingressive Capital, but eventually folded due to operational challenges and market fit issues.

    AWA Bike — Nigeria

    Founded in 2017 by Damilola Olugbemi, Ifeoluwa Ogundipe, and Ibukun Tunde-Oni, AWA Bike was a bike-sharing platform designed to address urban mobility issues in Nigeria. The startup allowed users to rent bicycles via a mobile app, which they could use to unlock bikes, set destinations, and pay for rides. AWA Bike aimed to offer a sustainable and affordable transportation solution for Nigerian cities. Despite investments from Ingressive Capital and Oui Capital, the startup shut down due to the inability to scale and low adoption rates in urban areas.

    S&T Media — Nigeria

    Founded in 2014 by Soji Ogundoyin and Tolu Roberts, S&T Media developed a digital advertising platform specializing in out-of-home advertising, particularly in petrol stations across Nigeria. The platform installed digital screens at fuel stations, offering brands a new way to reach consumers with targeted advertising. Despite securing seed funding from EchoVC, S&T Media could not sustain its operations, leading to its closure in 2023.

    LivOH — Ghana

    LivOH was a live-streaming platform launched in 2020 by Stephanie Asare. The Accra-based startup allowed artists and entertainers to connect with fans through virtual live performances, offering an immersive online experience. The platform also provided professionals with a way to host webinars and seminars, catering to both local and international audiences. After receiving investment from GOODsoil VC, LivOH closed down in 2022 due to insufficient demand and rising operational costs.

    Miaplenou — Togo

    Founded in 2012 by Tav Denkey Jr. and Ayawo Gbedjeha, Miaplenou was an e-commerce platform that connected African consumers with household products, electronics, and fashion apparel. The Lome-based startup aimed to offer a seamless online shopping experience across multiple African markets. Despite receiving funding from Sherpa Ventures, the startup shut down operations in 2023, citing logistical challenges and difficulties scaling its platform in a fragmented market.

    Inclusive — Ghana

    Founded in 2016 by Jonathan Ayivor and Paul Kwesi Damalie, Inclusive was a fintech startup offering an API for verifying financial identities across Africa. The platform helped connect unbanked individuals to the global financial ecosystem, enabling financial institutions and developers to reach underserved populations. Inclusive secured funding from DFS Lab but closed its doors in 2019, three years after launching, due to slow user adoption and challenges with scaling across multiple African markets.

    Malako — Uganda

    Launched in 2016 by Raymond Kalule and Hilda Nalwanga, Malako provided credit loan services aimed at helping low-income earners access financing for utility bills, rent, school fees, and other essential expenses. The startup offered upfront deposit loans to increase digital spending in Uganda. Despite securing early-stage investments from DFS Lab, Malako ceased operations in 2018 after struggling with loan recovery and customer default rates.

    Zenafri — Nigeria

    Founded in 2016 by Elizabeth Kperrun-Eremie and Idamiebi Ilamina-Eremie, Zenafri was a developer of educational mobile applications designed to preserve African cultural heritage by teaching African languages, traditional stories, and moral lessons to children. Despite receiving funding from Ventures Platform and being part of multiple accelerator programs, Zenafri shut down in 2024, struggling to find a large enough market for its offerings.

    GoldenEye (Aerospace and Defense) — Ghana

    GoldenEye, founded as a provider of precision aerial solutions, was dedicated to using unmanned aerial systems to address socio-economic and humanitarian challenges. Operating in stealth mode, the startup aimed to revolutionize aerial defense technology in Africa. Despite early investments from Golden Palm Investments, GoldenEye shut down operations in 2022, reportedly due to difficulties in securing contracts and partnerships within the defense sector.

    Swift Lab — Kenya

    Founded in 2013 by James Munyoki and Geoffrey Nyaga, Swift Lab was a logistics company that used drones to deliver medical supplies to remote and underserved regions in Kenya. The company aimed to improve healthcare access in hard-to-reach areas, using drone technology for fast and reliable delivery of critical supplies. Despite securing funding from Villgro Africa, Swift Lab shuttered operations in June 2024, citing regulatory hurdles and operational costs as the main challenges.

    Freshbag — Cameroon

    Founded in 2019 by Brice Mvogo, Freshbag was a digital platform that connected farmers and vendors to fair and reliable food markets. The startup helped agricultural cooperatives collect and transport crops to urban centers for distribution, aiming to reduce post-harvest losses and improve farmers’ incomes. Despite early investment from GreenTec Capital, Freshbag went out of business in 2023 due to scalability issues and logistical challenges. Other startups funded by GreenTec, such as Afrilife Honey in Tanzania and Save N Flex in Nigeria, have also faced similar fates.

    Quabbly — Nigeria

    Launched in 2021 by David Ogbonna-Eze, Jamiu Ozigi, and Soliudeen Ogunsola, Quabbly was a no-code platform that allowed businesses to create custom software applications without the need for coding expertise. The platform aimed to empower small businesses by offering tools for business process management, data collection, and automation. Despite raising funds from investors like Oui Capital and Ventures Platform, Quabbly shut down in 2023. The co-founders have since taken jobs elsewhere, and the reasons for the closure remain undisclosed.

    Blackbet — Nigeria

    Founded in 2017, Blackbet was a Lagos-based gaming platform aimed at simplifying and innovating sports betting for a global community of sports enthusiasts. The startup offered a safe and imaginative gaming experience, targeting both local and international markets. Despite receiving angel investment from Rising Tide Africa, Blackbet eventually ceased operations, with industry insiders citing regulatory pressure and a highly competitive market as the main reasons for its demise.

    The Bottom Line

    The collapse of various African startups highlights the delicate and often unpredictable nature of entrepreneurship on the continent. Even with increasing interest from both local and global investors in African markets, many founders face significant challenges in scaling their businesses, navigating regulatory hurdles, and managing operational inefficiencies.

    These issues are further complicated by fragmented infrastructure, difficulties in customer adoption, and fierce competition, despite a rise in investor confidence and capital inflows. Nevertheless, failure should not be viewed as a setback but rather as a crucial component of the innovation ecosystem. 

    Each business that closes, from Vigon Systems to Quabbly, provides essential insights into market dynamics, the necessity for solid business models, and the importance of grasping local realities before attempting to expand. Often, success stories arise from the lessons learned through previous failures, as founders adapt, refine their strategies, or launch entirely new ventures with a more profound understanding of the market landscape. 

    As the African startup ecosystem evolves, the conversation surrounding failure must change. These closures highlight the importance of strategic collaboration between investors and entrepreneurs, emphasizing long-term sustainability, local adaptability, and innovative solutions to the region’s most pressing issues. Ultimately, failure is not the conclusion — it’s a vital part of the journey toward building stronger, more resilient companies that can influence the future of African technology.

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