Lazerpay, a Nigerian cryptocurrency and Web3 company, has announced its closure after failing to raise funds in a recent funding round.
Emmanuel Njoku, the company’s founder and CEO, revealed in a statement that the shutdown was necessary due to the company’s inability to raise funds, despite its efforts to keep the company operational.
The company had also previously announced layoffs in November 2022 as a result of a lead investor pulling out. Lazerpay, which was launched in October 2021 to drive crypto adoption globally, helps businesses accept stablecoin payments from customers around the world.
Njoku expressed gratitude to the company’s users, stating,
“We are immensely grateful for the connection we have made and the impact our platform has made in the crypto ecosystem.We fought hard to keep the lights on for as long as possible, but unfortunately, we are now at the point where we need to shut down.”
Lazerpay has urged its merchants to withdraw their funds before April 30, 2023, and has recommended using the bank or crypto payout options. The company has also invited offers from companies interested in purchasing its intellectual property.
Despite Lazerpay’s closure, certain cryptocurrency payment startups in Africa are thriving. For instance, NairaEx, an active Bitcoin exchange in Nigeria, is still serving as a medium for Nigerian traders to purchase or sell the country’s fiat currency, nairas, for cryptocurrency.
However, the African crypto space has recently experienced significant upheaval, with Paxful, a Bitcoin peer-to-peer marketplace, announcing its cessation of operations last week.
Nigerian Crypto Start up Lazerpay
Lazerpay’s closure underscores the challenges facing startups in the crypto industry, particularly those in emerging markets.
The failure to raise funds can signal to investors a lack of confidence in the company’s business model or potential growth, making it difficult for startups to continue their operations.
As such, startups in the crypto industry must have a sound business strategy and a sustainable revenue model to attract investors and succeed in the long run.