FINTECH AFRICA | Web3-Backed Nigerian Fintech, Chimoney, Shuts Down Exposing Vulnerabilities of Startup Infrastructure

Nigerian Canadian fintech startup, Chimoney, has shut down after failing to raise enough capital to sustain its cross-border payments business, marking another casualty in Africa’s tightening venture funding environment.

Chimoney, founded in 2022 by Uchi Uchibeke, said in a May 2026 email to customers that it had ceased processing new transactions and integrations and had begun refunding customer balances, according to a local media report.

“As of May 1, 2026, Chimoney has ceased all new transactions and integrations,” the company said in the email.

“No balance on file: No action needed on your end. This is our final operational email.”

The startup built payment infrastructure that allowed businesses to send money to freelancers, contractors, and vendors across Africa, North America, and Latin America using a single API. The platform supported payouts in 41 currencies through

• bank transfers,
• mobile money,
• airtime,
• gift cards, and
• stablecoin off-ramps.

The startup secured a payment service provider (PSP) license under the Bank of Canada in November 2025 and says it will retain the license under dormant status.

Chimoney joined the Techstars Toronto accelerator program in 2023 and raised about $280,000 in disclosed funding, according to Crunchbase data, though Uchibeke said the total capital and grants raised was closer to $1 million.

According to a 2023 coverage by BitKE, Chimoney was backed by Web3 entities including:

• Celo
• Interledger Protocol
• Ripple
• Moonbeam

Uchibeke said the company struggled to scale distribution while operating across multiple jurisdictions with limited funding.

“Under $1 million is too thin for a venture-scale fintech across multiple jurisdictions,” he said.

“I should have either raised meaningfully more or bootstrapped properly with a profitable beachhead. Trying to operate at venture scale on bootstrap capital was the wrong strategy.

He added:

“When revenue stayed flat, and there was no clear path to additional capital, the responsible decision was to wind down while we could still return every client dollar and meet every regulatory obligation.”

The company reportedly informed investors about its planned shutdown in February 2026 and notified customers in April 2026 while also publishing migration guides for developers before stopping transactions on April 30 2026.

The shutdown comes as African startups face one of the continent’s toughest funding climates in years. Investor participation in African startup deals fell 26% in the first four months of 2026 compared with the same period a year earlier, according to data from Africa: The Big Deal.

Although overall startup funding volumes in Africa have remained relatively resilient due to larger debt deals, the number of transactions has sharply declined, with investors becoming increasingly selective about early-stage companies.

Chimoney’s closure also highlights broader risks facing businesses that rely on startup-built payment infrastructure. Companies using Chimoney’s rails for cross-border transactions will now need to migrate to alternative providers following the shutdown.

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