Pivo, a notable Nigerian fintech that specializes in providing banking services tailored for small businesses operating in the supply chain sector, has announced its closure, marking the end of its operations just a year after successfully securing a substantial $2 million seed round.
This startup, which garnered significant attention and financial backing, notably raising over $2.6 million from a diverse group of investors including Y Combinator, Ventures Platform, Mercy Corp Ventures, and more than 15 other backers, is now facing the challenging decision to cease its activities. The closure was confirmed by a reliable source with direct knowledge of the company’s affairs, although specific details surrounding the shutdown were not disclosed.
Founded in July 2021 by Nkiru Amadi-Emina (CEO) and Ijeoma Akwiwu (COO), Pivo entered the fintech landscape with the mission to address the unique banking needs of small logistics and haulage businesses within Nigeria’s supply chain sector. Despite its early success and robust financial support, the recent announcement of Pivo’s closure raises questions about the challenges or circumstances that led to this unexpected outcome, leaving stakeholders and the broader industry seeking further insights into the company’s journey and ultimate decision to wind down its operations.
In its early stages, Pivo demonstrated impressive fundraising capabilities, securing a $100,000 pre-seed round from notable investors such as Microtraction, FirstCheck Africa, and Rally Cap Ventures merely two months after its launch. This initial funding underscored the market’s confidence in Pivo’s potential to address critical challenges in the supply chain sector.
Building on this momentum, Pivo further solidified its position by successfully raising a substantial $2 million seed round in November 2022. Nkiru Amadi-Emina, the CEO, outlined the strategic allocation of these funds, emphasizing plans for geographical expansion into East Africa. Additionally, Amadi-Emina articulated the company’s commitment to addressing the prevailing pain points within supply chain SMEs, particularly focusing on launching innovative products centered around streamlining payment processes.
This ambitious strategy reflected Pivo’s dedication to not only enhancing its regional presence but also actively contributing to the transformation of financial services for small businesses operating in the supply chain sector. However, despite these promising initiatives and financial backing, the recent decision to cease operations has cast uncertainty over Pivo’s ability to realize its expansion goals and innovative product launches.
Nkiru Amadi-Emina and Ijeoma Akwiwu, the co-founders of Pivo, brought substantial expertise from the logistics sector to the table before establishing the fintech startup. Amadi-Emina, in particular, founded Jalo, an on-demand delivery company that caught the attention of the industry and was eventually acquired by Kobo360 in August 2018. Armed with a deep understanding of the logistics landscape, Amadi-Emina and Akwiwu ventured into uncharted territory with Pivo. Notably, when Pivo was initiated, it entered the supply chain sector without facing direct competition, giving the founders a unique advantage in shaping their vision for the company.
