Lazerpay, a Nigerian crypto-based fintech solution, has announced the shutdown of its business operations due to the inability to raise funds for the survival of the company. In a letter addressed to stakeholders, the CEO, Njoku Emmanuel, explained that despite the company’s efforts to raise funds, it was unsuccessful, leading to the decision to shut down the business. Emmanuel expressed his regret at the decision to shut down the business, stating that the company had tried to keep the lights on for as long as possible.
Lazerpay has offered to sell its Internet Protocol (IP) to companies interested in building on the future of crypto payments. The company has also expressed its willingness to show interested companies how the technology works from the inside and how to integrate it. The firm has promised to resolve all outstanding matters before the disruption, and merchants are advised to withdraw their funds from the platform before April 30, 2023.
Lazerpay was established two years ago with the aim of driving crypto adoption globally. The company has enabled over 3,000 businesses to accept payments in stablecoins, including an off-ramp feature that allows merchants to convert crypto to fiat directly to the bank in over 100 countries. The company has had to make some tough decisions in the past, including firing members of its team last November in a bid to extend its operating runway after a proposed lead investor pulled out abruptly due to market conditions and disagreements on terms. It is worth noting that the firing round occurred after the company employees agreed to a pay cut, while the management team took zero salaries.
The shutdown of Lazerpay is a significant blow to the crypto industry in Nigeria, which has been growing rapidly in recent years. The country has become a hub for crypto adoption, with many businesses and individuals embracing the technology. The shutdown of Lazerpay highlights the challenges faced by crypto-based fintech solutions in the country, including the difficulty in raising funds and the lack of regulatory clarity.
It is hoped that the Nigerian government will take steps to address these challenges and create a more conducive environment for crypto-based fintech solutions to thrive. The government has already taken some steps in this direction, including the establishment of a regulatory framework for the industry. However, more needs to be done to ensure that crypto-based fintech solutions can operate in a supportive environment that encourages innovation and growth.
In conclusion, the shutdown of Lazerpay is a sad development for the crypto industry in Nigeria. However, it is hoped that the lessons learned from this experience will help to create a more supportive environment for crypto-based fintech solutions in the country. The government and other stakeholders must work together to address the challenges facing the industry and create a brighter future for crypto in Nigeria.