Lazerpay, a Nigerian crypto startup that was committed to driving global crypto adoption, has announced its closure after two years in operation. The company had enabled over 3000 businesses to accept payments in stable-coins all over the world and added off-ramp features to help merchants convert their crypto to fiat directly into their bank accounts in over 100 countries. It had also introduced an on-ramp/off-ramp product to help merchants convert their crypto to fiat and vice-versa.
In a statement released by the CEO and Founder, Njoku Emmanuel, the company had fought hard to secure the necessary funding to keep Lazerpay going, but unfortunately, it was unable to close a successful fundraising round. The team had made the difficult decision to cease operations and advised merchants to withdraw their funds from the platform before the 30th of April 2023 using the Bank or Crypto payout option.
The company had been fortunate enough to garner the support of a phenomenal community that had made their experience so rewarding. They remain committed to helping their users transition smoothly and ensuring that any outstanding matters are resolved. Lazerpay also welcomed offers from companies interested in purchasing its IP and continuing to build the future of crypto payments.
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In November 2022, Njoku Emmanuel announced that the company would be laying off employees in a bid to extend its operating runway. The company had initially resorted to stopping the salaries of the management team and cutting the salaries of other employees but was forced to lay off employees due to the lack of funding.
Despite the closure of Lazerpay, the team remained optimistic about the future of crypto adoption and proud of everything they had achieved.
In Summary, Here Are The Key Reasons Why Lazerpay Shut Down So Early
- Unable to secure necessary funding: The most significant reason for Lazerpay’s shutdown appears to be the company’s inability to secure funding. Despite the team’s efforts to close a successful fundraising round, they were unable to do so. This lack of funding, which first forced the company to lay off employees, ultimately led to the company’s decision to shut down.
- Competitive market: The crypto payments industry is highly competitive, with many players competing for market share. Lazerpay may have struggled to compete with larger, more established companies in the space, which could have made it difficult to attract investors and secure funding.
- Market adoption: Despite Lazerpay’s efforts to drive crypto adoption globally, it is unclear how successful the company was in this regard. If the company failed to gain significant traction in the market, this could have made it more challenging to secure funding and stay afloat.
- Management issues: While not explicitly stated, the fact that Lazerpay initially stopped paying the salaries of its management team could suggest that there were internal management issues that contributed to the company’s shutdown.
Lazerpay shutdown
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard