Gigbanc Shuts Down After 3 Years, Cites Funding Crunch and Rising Costs

Nigerian fintech startup Gigbanc is closing its doors after three years of operations, blaming a tough fundraising environment and high operating costs. Customers have until July 31 to withdraw their legitimate funds before the company ends operations.

Why Gigbanc is closing

Gigbanc, which built cross-border payment solutions for freelancers, digital creators, remote workers and businesses, said a combination of declining access to venture capital and the high cost of running its business made it unsustainable to continue. The company is currently in acquisition discussions with an unnamed Nigerian fintech infrastructure provider as it explores an exit strategy.

According to Gigbanc's co-founder and Chief Executive Officer, 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, alongside infrastructure expenses. He explained that while the company explored the possibility of changing its business model, it was unable to secure the fresh investment required to finance that transition. As a result, management concluded that pursuing a sale of the business was the most practical option.

What users need to do

Gigbanc advised customers to withdraw their funds before its closure. Users have until July 31 to convert their account balances into naira and transfer all legitimate funds to local bank accounts without incurring charges.

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 more than 200 Nigerian banks. Over its three-year operation, the company said it served over 150,000 users in more than 30 countries and processed transactions worth over N10 billion.

Broader trend across African startups

The closure reflects a broader trend across Africa's startup ecosystem, where many early-stage companies are struggling to attract new investment despite modest improvements in overall funding figures. Although African startups collectively secured about $1.44 billion in funding during the first half of 2026, representing a slight increase from the same period last year, the number of disclosed investment deals declined significantly from 252 to 146. The sharp drop suggests 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 operations or seeking acquisition by larger firms. Gigbanc's exit adds to the growing list of African startups forced to wind down operations or seek alternative exits as venture funding becomes harder to obtain. In May 2026, Nigerian-founded cross-border payments startup Chimoney also shut down after failing to secure fresh investment, while in March, Y Combinator-backed cloud kitchen startup FoodCourt suspended operations after struggling to maintain a sustainable business model.

Okundaye expressed appreciation to the company's employees, users and community, saying Gigbanc was founded on the belief that African professionals deserved world-class financial infrastructure. He added that although the business is coming to an end, the company remains optimistic about the future of Africa's digital economy while focusing on concluding ongoing acquisition negotiations.

For Nigerian consumers and the naira, Gigbanc's shutdown is another sign that the fintech sector is tightening. With fewer investment deals and stricter investor scrutiny, startups serving freelancers and remote workers may find it harder to offer competitive cross-border payment services. This could leave many Nigerian freelancers with fewer options for cheap and fast foreign currency transactions, potentially pushing them back to traditional banks or more expensive alternatives.