Pivo, the Nigerian fintech that offered banking services to small supply chain businesses, is shutting down one year after raising a $2 million seed round.

Pivo, the Nigerian fintech startup that raised more than $2.6 million from Y Combinator, Ventures Platform, Mercy Corp Ventures, and over 15 other investors, is shutting down. One person with direct knowledge of the business confirmed the closure to TechCabal but did not provide further details.

“I cannot provide the specifics at this time but will be happy to do so later,” Amadi-Emina, the company’s cofounder and CEO, told TechCabal via WhatsApp.

Founded by Nkiru Amadi-Emina (CEO) and Ijeoma Akwiwu (COO) in July 2021, the startup offered banking services to small logistics and haulage businesses in Nigeria’s supply chain sector.

Pivo raised a $100,000 pre-seed round from investors like Microtraction, FirstCheck Africa, and Rally Cap Ventures two months after its launch. It later raised a $2 million seed round in November 2022; at the time, Amadi-Emina told TechCabal that the funds would be used to expand to East Africa and launch new products around payments, a major pain point for supply chain SMEs.

Amadi-Emina and Akwiwu both had significant experience in the logistics sector before founding Pivo. Amadi-Emina founded Jalo, an on-demand delivery company acquired by Kobo360 in August 2018. When she and Akwiwu started Pivo, they had no competition in the supply chain sector.

Pivo’s market approach
Pivo wanted to solve the liquidity problem in Africa’s supply chain by providing financing options for supply chain businesses like logistics service providers, clearing and forwarding businesses, and FMCG distributors. Supply chain financing in Africa was estimated to be worth $41 billion last year.

The startup had two fintech verticals: Pivo Capital, a lending product, and Pivo Business, a business banking product. The company claimed to have disbursed more than $3 million in loans a year after its launch through Pivo Capital and processed more than $4 million through Pivo Business.

The startup provided credit to these businesses, which need to obtain funds from lenders to finance a transaction before being paid by buyers, only after validating with prospective buyers that the deals were legit. The startup said this approach allowed it to record a 98% repayment rate.

Pivo’s shutdown is the latest in a line of African startups that have shut down this year for various reasons. Over a dozen African startups have shut down this year as the economic downturn and a rising funding gap continue to create a difficult environment for African startups.

Source: https://techcabal.com/2023/12/05/pivo-is-shutting-down/

The so-called investors have more money than sense, hence the reason they invest in 'tech' companies that are ultimately doomed to fail.

Many of these so-called tech companies have nothing more than brightly coloured offices, a few computers/laptops and a half-baked, bound-to- fail idea that they wax lyrics around and sell to investors as a viable business.

Many of these founders have no tangible business or life experience - yet, misguided investors will give them money.

It is no surprise over 95% of them fail.

This particular company raised $2m less than a year ago, yet they're already out of business. No doubt the founders took very good care of themselves and left the naive investors licking their wounds.

OKUCHI11:
r

meaning their closure is not as a result of the harsh economic environment

Oh lord save us

Another batches of unemployed people to the streets

I hope dey never run the investor mmm so?

DeLaRue:
The so-called investors have more money than sense, hence the reason they invest in 'tech' companies that are ultimately doomed to fail.

Many of these so-called tech companies have nothing more than brightly coloured offices, a few computers/laptops and a half-baked, bound-to- fail idea that they wax lyrics around and sell to investors as a viable business.

Many of these founders have no tangible business or life experience - yet, misguided investors will give them money.

It is no surprise over 95% of them fail.

This particular company raised $2m less than a year ago, yet they're already out of business. No doubt the founders took very good care of themselves and left the naive investors licking their wounds.

More like the hard economic situation affected their customer base which in turn affected the company

They were offering financing IE loans..

..

Fintechs In Nigeria are legalised yahoo businesses

Nawa

These girls go just claim feminist lesbians and this matter will die a natural death

DeLaRue:
The so-called investors have more money than sense, hence the reason they invest in 'tech' companies that are ultimately doomed to fail.

Many of these so-called tech companies have nothing more than brightly coloured offices, a few computers/laptops and a half-baked, bound-to- fail idea that they wax lyrics around and sell to investors as a viable business.

Many of these founders have no tangible business or life experience - yet, misguided investors will give them money.

It is no surprise over 95% of them fail.

This particular company raised $2m less than a year ago, yet they're already out of business. No doubt the founders took very good care of themselves and left the naive investors licking their wounds.

Before seed rounds, the business plan, execution, market, and liquidation plan, are thoroughly discussed. Not every business is bound to succeed, over 90% fail within 5 years in this rigid business environment.

Even the banks are bleeding!

Now is not the time to lend anybody money; be it persons, corporate, or supply chain. They all won't pay back.

nairalanda1:


More like the hard economic situation affected their customer base which in turn affected the company

They were offering financing IE loans..

I'm not sure it has anything to do with that

CEO don use the bulk of the $2 million pay himself

datola:


I'm not sure it has anything to do with that

Maybe, but when I hear a company is offering financing in places like Nigeria, and it is not a name bank that can demand collateral..

A company heavily dependent on electricity will never do well in our clime.

DeLaRue:
The so-called investors have more money than sense, hence the reason they invest in 'tech' companies that are ultimately doomed to fail.

Many of these so-called tech companies have nothing more than brightly coloured offices, a few computers/laptops and a half-baked, bound-to- fail idea that they wax lyrics around and sell to investors as a viable business.

Many of these founders have no tangible business or life experience - yet, misguided investors will give them money.

It is no surprise over 95% of them fail.

This particular company raised $2m less than a year ago, yet they're already out of business. No doubt the founders took very good care of themselves and left the naive investors licking their wounds.

The way people make so much noise about tech companies eh! Infact, I feel like founding one myself. I don start to dey learn coding sef... But what people don't really realize is tech can be very feeble where the practitioners lack commitment, dedication and continuous innovation (which is a lot of hard work).

Seems this fintech is the lastest legit Yahoo I must key into.

Just lunch a fintech app that offers service we already have or don't need raise huge cash through investors.

After to years crash the Fintech and cashout

DeLaRue:
The so-called investors have more money than sense, hence the reason they invest in 'tech' companies that are ultimately doomed to fail.

Many of these so-called tech companies have nothing more than brightly coloured offices, a few computers/laptops and a half-baked, bound-to- fail idea that they wax lyrics around and sell to investors as a viable business.

Many of these founders have no tangible business or life experience - yet, misguided investors will give them money.

It is no surprise over 95% of them fail.

This particular company raised $2m less than a year ago, yet they're already out of business. No doubt the founders took very good care of themselves and left the naive investors licking their wounds.

The way people make so much noise about tech companies eh! Infact, I feel like founding one myself. I don start to dey learn coding sef... But what people don't really realize is tech can be very feeble and volatile where the practitioners lack commitment, dedication and continuous innovation (which is a lot of hard work).

DeLaRue:
The so-called investors have more money than sense, hence the reason they invest in 'tech' companies that are ultimately doomed to fail.

Many of these so-called tech companies have nothing more than brightly coloured offices, a few computers/laptops and a half-baked, bound-to- fail idea that they wax lyrics around and sell to investors as a viable business.

Many of these founders have no tangible business or life experience - yet, misguided investors will give them money.

It is no surprise over 95% of them fail.

This particular company raised $2m less than a year ago, yet they're already out of business. No doubt the founders took very good care of themselves and left the naive investors licking their wounds.

Life is all about taking risks. Just imagine if those who invested in Paystack, Google, Facebook, etc. had this mindset.

I must agree you made some points though. They should have had a board to monitor the progress of the company and provide expert advice.

It's also possible that why the company closed shop is that their investors decided to pull out their investments.

truth is some if not most African founders dream is to raise funds and pay themselves and cronies jumbo salaries

if this founders have this money themselves ($2m, $5m etc) as their hard earned personal funds they will never put it close to any of the idea they are pitching to investors

Every business needs a paying customer base to survive.

Nigeria happened to them.

You might be needing my signature down

Investors money don go

All these closing and shutting down of companies since Emilokan enter eeh




Agbadorians won't see anything wrong I bet you...

omoredia:
Fintechs In Nigeria are legalised yahoo businesses

more like it.

Most of these so called tech companies only have grandiose business plans which are not economically viable in the real world

Ok

The only viable venture worth investing in right now in Nigeria is agriculture. Any other thing is a waste of resources. Even investmenting in Agri processing sub sector is still 70% risky cos of the Nigerian government policies, machinery and power alone will account for 90% cost of production and multi multiple taxations will suck the rest...

I don't know why the focus of these chicken tech companies is always on expansion. You have barely started crawling, you want to fly. What was the motive of expanding to East Africa when they had barely gotten the business of the ground in West Africa? That's just planning to fail!