Nigerian fintech startup Payday is currently in discussions about a potential acquisition, following its successful seed funding round that raised $3 million just six months ago. CEO Favour Ori has confirmed these ongoing talks with prospective acquirers.
However, the road to acquisition is fraught with difficulties due to a string of negative media coverage and internal issues. In August, Payday publicly acknowledged that it had temporarily suspended customer account access due to fraudulent activities resulting in financial losses for some users. Notably, the company reduced salaries for certain Nigerian staff members in July, a move that raised questions given the recent injection of $3 million in funding just three months earlier.
Additionally, Payday has experienced a series of employee departures in recent months, including co-founder and Chief Operating Officer (COO) Ogechi Obike. In her departure statement, Obike cited a misalignment of goals as her primary reason for leaving.
Reports suggest that Favour Ori, the company’s founder, has been a challenging collaborator, as his impulsive decision-making has occasionally led to costly consequences. For example, some customers suffered financial losses while attempting to create virtual cards, and others experienced disruptions in accessing their accounts when Favour abruptly switched Payday’s Mastercard provider without thorough vetting.
Despite these significant challenges, Payday is actively exploring acquisition opportunities. Whether the company can successfully secure a buyer amid negative publicity and internal turbulence remains uncertain.
