When Bizao SAS, the French parent company of Ivorian fintech startup Bizao, quietly entered receivership earlier this year, it sent ripples through Africa’s fintech ecosystem. Announced in France’s Official Bulletin of Civil and Commercial Announcements (BODACC) on March 20, 2025, the news marked a sobering moment for one of Francophone Africa’s most promising digital payments firms. Behind the headlines, however, Bizao’s plight has cast fresh scrutiny on a growing trend: the strategic decision of many Francophone African startups to incorporate and operate out of France.

This strategy isn’t new. In fact, France has quietly become a magnet for startups operating in West and Central Africa’s French-speaking economies. From Senegalese communications startup LAFRICAMOBILE to Ivorian fintech Julaya and Cameroonian crypto outfit Ejara, a growing number of Africa-focused companies have opted to register as Société par Actions Simplifiée (SAS) — a flexible French corporate structure akin to a U.S. Delaware C-Corp or a UK limited company.

At first glance, the advantages are clear. France offers robust financial systems, stronger legal protections, smoother access to European capital markets, and a favorable regulatory environment for high-growth digital startups. But Bizao’s recent troubles show that while France may be a hotbed for Francophone African innovation, it’s not immune to the risks that come with fast-paced scaling.

Founded in 2019 by former Orange executive Aurélien Duval-Delort, Bizao had all the hallmarks of a rising African fintech leader. Headquartered at 66 rue Saint-Sabin in Paris’ 11th arrondissement, the company facilitated digital payments across mobile money, bank cards, and wallets, serving clients in Côte d’Ivoire, Senegal, Tunisia, Cameroon, and the Democratic Republic of Congo.

In 2022, Bizao closed an $8.6 million Series A round led by AfricInvest, with backing from Seedstars Africa Ventures and Adelie. The goal was ambitious: scale its B2B platform across Francophone Africa and introduce new products. By 2023, the startup claimed it was processing more than 300 million payment requests per month.

Then came March 2025.

Bizao SAS entered redressement judiciaire, or court-ordered receivership — a French legal status that halts creditor actions and appoints an administrator to help salvage viable businesses. Duval-Delort downplayed the move as a voluntary restructuring of the French entity only. “The operations of our African subsidiaries are continuing as normal,” he said.

Yet, the timing raises red flags. The company’s website recently went under, and neither the extent of its liabilities nor the prospects for a court-approved continuation plan are known. Investors, including AfricInvest and Seedstars, have not publicly commented.

A French Playbook

Bizao’s setup is not unique. Several leading Francophone startups share similar blueprints:

• Julaya, with its registered office at 32 Avenue Henri Varagnat in Bondy, France, describes itself in France’s official business registry as publishing online software and facilitating digital transactions for African businesses.
• LAFRICAMOBILE, headquartered in Paris’ prestigious 8th arrondissement, states that it specializes in acquiring and managing shares in telecommunications and digital companies, effectively acting as a holding company for operations in Senegal and beyond.
• Ejara, the Cameroonian digital asset startup with a Bordeaux HQ, is registered with France’s Financial Markets Authority (AMF) to offer blockchain-based financial services, something that would be harder to secure under less-developed African regulatory regimes.

These firms often cite one reason for establishing French headquarters: access. Access to venture capital, access to banking infrastructure, and access to legal protections that African jurisdictions sometimes lack.

“Being based in France provides credibility with European investors and simplifies compliance,” says one African fintech founder who asked not to be named. “Try opening a Stripe account or raising a seed round from a Paris VC with an Abidjan or Dakar registration. It’s nearly impossible.”

A Tale of Two Systems

Contrast this with Gokada, a Nigerian startup that made international headlines in October 2024 after filing for Chapter 11 bankruptcy in Delaware. Once heralded as a success story in Anglophone Africa’s mobility tech sector, Gokada’s collapse reveals another side of the HQ decision.

After raising $5.3 million and expanding logistics operations across Nigerian cities, Gokada’s fortunes plummeted due to regulatory clampdowns, internal turbulence, and failed pivots. The Delaware court, where Gokada is incorporated, now oversees a Subchapter V bankruptcy process involving over $5 million in liabilities — the majority owed to unsecured Nigerian creditors.

Gokada’s Chapter 11 filing in the United States mirrors what many Anglophone African startups pursue: incorporation in Delaware for ease of fundraising and startup-friendly laws. Similarly, UK-based structures are common among East African and Southern African startups that seek access to London’s venture and banking ecosystems.

But in both systems — whether France, Delaware, or London — the same challenges loom large: access to capital, regulatory unpredictability, weak local infrastructure, and overdependence on founders’ visions.

The Hot HQ: Risk or Opportunity?

So is France the best place to anchor a Francophone African startup?

The legal and financial infrastructure offers clear benefits. France’s SAS model allows for rapid capital raising and easy share transfers, while proximity to European investors enables easier Series A and B fundraising. The country’s status within the EU also enhances passporting rights for fintechs.

However, the Bizao case highlights inherent risks. French law is stringent: once a company enters receivership, it faces high administrative oversight and risks asset seizure if a continuation plan fails. For startups with high burn rates and slow monetization, like many in Africa’s fragmented fintech sector, the French system can quickly become unforgiving.

Moreover, registering abroad doesn’t shield startups from the core challenges of operating in Africa: currency fluctuations, limited digital infrastructure, and regulatory uncertainty. Bizao’s core markets, from Kinshasa to Abidjan, still present difficult conditions for scaling sustainable B2B financial services.

The Bottom Line

France remains a preferred HQ for Francophone African startups, and for good reason. Its legal protections, investor networks, and international reputation offer a platform for ambitious founders to scale beyond borders. But Bizao’s receivership reminds the ecosystem that prestige and location can’t replace strong fundamentals.

Whether incorporated in Paris, London, or Delaware, African startups still face the same test: sustainable growth in complex, fast-evolving markets. As investors and regulators turn their eyes to the continent’s startup scene, founders must balance international ambition with grounded execution.

And for now, France — hot as it may be — is no silver bullet.