Nigerian fintech company Kippa has decided to discontinue its payment processing product, KippaPay, starting November 15, 2023.
The company, which secured a significant $8.4 million investment from global investors in September 2022, including Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital, and others, has opted to refocus its efforts on its core bookkeeping app.
Kippa had previously entered the agency banking sector after acquiring a super agent license, pitting itself against established players like OPay and Moniepoint.
Despite recruiting top talent from the fintech industry, Kippa faced challenges due to the economic climate in Nigeria, particularly the devaluation of the naira, which impacted their margins.
The discontinuation of KippaPay is part of a strategic move to reallocate resources and streamline their offerings.
This decision will help the company cut costs associated with running the payment processing product.
Kippa will also phase out its business registration product, Kippa Start, in the coming months. This restructuring is not driven by financial difficulties; rather, it’s a proactive measure to ensure the sustainability of their remaining products.
The company’s bookkeeping mobile app, which enables small business owners to manage their finances, issue invoices, and monitor debtors, will remain a core offering.
Kippa’s bold strategic pivot reflects the evolving landscape of Nigeria’s fintech industry and the need to adapt to changing market conditions while maintaining a sustainable business model.