Thepeer’s Short-Lived Payments Revolution: From $2.1M Seed Funding To Shutdown

Nigerian startup Thepeer, which gained prominence for its API-based payment solutions, has announced its closure just three years after its inception. 

Thepeer went from securing $2.1 million in seed funding led by Raba Partnership, with participation from Rali_cap Ventures, BYLD, and fintech giants like Chipper Cash and Stitch, to its unexpected shutdown recently announced.

“We embarked on a mission to create something unprecedented, a unique method for transferring money between digital wallets and making payments for goods and services directly from these wallets,” the founders said in a statement.

“Yet, we soon realized that exceptional technology alone wasn’t sufficient.”

Thepeer’s Journey

Founded by Kosisochukwu Chike Ononye and Michael’ Trojan’ Okoh in 2021, Thepeer was located at the intersection of data and finance. 

It offered an API system facilitating direct money transfers across various fintech wallets, intending to simplify payments and wallet interactions for businesses and consumers.

However, the startup hit a roadblock due to regulatory compliance issues and slower-than-expected market acceptance of wallet-based payments.

Despite initial success and a focus on product innovation and customer service, Thepeer’s efforts to navigate the regulatory landscape proved challenging.

The startup initially faced difficulties launching key wallet providers and maintaining their services. 

This struggle with compliance issues and the slow uptake of wallets as a viable payment option led to a significant drain on resources. 

These challenges, combined with the realization that a pivot or merger & acquisition was not feasible, prompted Theeper’s decision to enter maintenance mode and eventually return the remaining funds to investors.

“Thepeer will be placed on maintenance mode for the interim. We’ll work to maintain the platform for as long as possible until we discover a new home for it,” the founders said.