Nigerian fintech firm Kippa has announced a strategic pivot, which involves discontinuing its offline payment service, KippaPay, starting on November 15, 2023. As part of this transformation, the core team responsible for KippaPay will be laid off by December 2023.
This decision, explained by CEO Kennedy Ekezie, is aimed at consolidating the company’s profitable product offerings. While the discontinuation of KippaPay is part of this plan, it’s important to note that this service has made a significant impact on their merchant base.
Kippa, renowned for its bookkeeping solutions, launched Kippa Payments in April 2022 to facilitate invoicing and payments, while also gaining deeper insights into customer behavior. The company recently secured $8.4 million in funding from global investors and entered the competitive agency banking sector.
Despite having reached a peak of approximately 15,000 agents, Kippa faced challenges due to adverse macroeconomic conditions in Nigeria, such as the devaluation of the naira.
As part of this pivot, Kippa is set to discontinue its business registration product, Kippa Start. This decision, according to the company, is driven by the necessity to effectively manage operational costs.
In summary, Kippa is embarking on a strategic shift, which involves discontinuing KippaPay and streamlining its operations. Unfortunately, this streamlining process includes laying off the core team responsible for the product.