The sudden shutdown of Nigerian fintech startup Okra has reignited expert conversations about the sustainability of venture-backed tech ventures in Africa.
Once hailed as one of the continent’s most promising open finance startups, Okra’s exit in May sent a wave of concern across the African tech ecosystem.
For many, this development isn’t just about the fall of a single company, it reflects broader tensions surrounding the viability of Africa’s startup environment amid global economic tightening and investor skepticism.
The news came at a time when African startups, particularly in fintech, were beginning to recover from the fundraising drought of 2022–2023. With startup founders frequently battling infrastructure gaps, regulatory uncertainties, and talent flight, Okra’s closure is prompting serious reflection on whether the African tech boom is slowing, or simply evolving under new pressures.
What Is Okra’s Story?
Founded in 2019 by Fara Ashiru Jituboh and David Peterside, Okra quickly gained position as a powerful financial data infrastructure company, providing APIs that allowed banks and fintechs to connect seamlessly with customer bank accounts.
In just a few years, it raised over $16 million from notable investors like Accenture Ventures and Susa Ventures. It was seen as part of the vanguard modernizing Africa’s digital finance backbone.
However, co-founder Fara Ashiru recently announced the company’s shutdown, citing a “calculated decision” to return approximately $4 million in remaining funds to investors rather than “burn through it all.”
She is currently with UK-based Kernel as Chief Operating Officer. While Okra’s move was praised for its transparency, it raised questions about product-market fit, monetization challenges, and investor expectations, particularly in a space where regulatory frameworks remain inconsistent across countries.
Some African Tech Startups That Have Shut Down in the Past
Okra’s closure joins a growing list of African tech startups that have shut down after raising millions. In 2022, Kenyan logistics startup Sendy, which raised $20 million in Series B funding, shuttered operations due to a failed business pivot and market saturation.
Nigeria’s 54gene, once valued at over $150 million and backed by Y Combinator and Adjuvant Capital, also folded in 2023 amid mismanagement claims and restructuring issues. Other startups like Kune Food in Kenya, which aimed to revolutionize food delivery, closed barely a year after its $1 million pre-seed round, citing high burn rates and operational costs.
These failures point not just to funding issues but to strategic misalignments, unclear growth paths, and sometimes overly optimistic projections not grounded in local realities.
Why It Matters
These shutdowns paint a complex picture. On one hand, they indicate a necessary market correction where only truly scalable and locally adapted solutions will thrive.
On the other hand, such high-profile failures risk undermining investor confidence, particularly from international supports already cautious about political instability, currency volatility, and regulatory fragmentation across African markets.
Yet, experts argue that this phase of attrition could strengthen the ecosystem in the long term.
“What we’re witnessing is natural selection in an emerging market,” says Nigerian tech policy consultant Iyinoluwa Aboyeji.
“It’s not the end; it’s the start of a more focused, evidence-driven investment cycle.” Investors may become more selective, but they are unlikely to completely withdraw from a continent with untapped markets and rising digital demand.
Sampled Experts’ Comments and Views on the Matter
A number of investors and analysts have weighed in on Okra’s closure with a mix of disappointment and understanding. Moniepoint’s CEO, Tosin Eniolorunda, in an X (formerly Twitter) post, wrote: “We must normalize graceful exits. Okra’s founders made a tough but honorable decision. It shows leadership.”
Meanwhile, Future Africa’s Iyinoluwa Aboyeji, one of Africa’s most influential investors, praised the transparency and hinted that this could set a precedent for responsible capital deployment in the region. Uwem Uwamakpan, a venture capitalist, also held a supportive view, when he said, “Lead with empathy, not judgment,” on Okra’s shutdown.
According to Africa: The Big Deal, African startups raised $2.9 billion in 2023—down from $4.6 billion in 2022. However, fintech still attracted the lion’s share (36%), suggesting that investor appetite remains, albeit more measured.
Speaking to the media, Helios Investment Partners’ executive Dayo Bayo remarked, Investors aren’t fleeing Africa; they’re recalibrating. The challenge now is to fund durable, not just disruptive, solutions.
Talking Point
Africa’s tech ecosystem, though still growing, remains promising for founders, investors, and other active market players.
Agreed, Okra’s and other shutdowns may trigger caution, they are unlikely to derail Africa’s startup momentum. Instead, they mark the beginning of a new chapter, one that calls for thoughtful innovation, improved governance, regulatory action, and grounded optimism.
Finally, while investors must step up due diligence and strategic vetting to identify startup ideas with strong scalability, founders also need to thoroughly study and understand the African ecosystem in which they operate. This is a major determining factor in long-term business success.
