Nigerian digital bank Eyowo has denied news of its shutdown.
Tech publication Technext reported that the start-up would shut down on June 27, citing an email from the start-up’s founders, which attributed the closure to recent “market complications”.
Eyowo co-CEOs Yomi Adedeji and Omoseindemi Olobayo have, however, told TechCabal that the company has no plans to shut down.
Olobayo, who confirmed that the company sent emails to employees about significant changes at Eyowo, claimed that the news reports making the rounds misinterpreted the email.
He explained Eyowo is decommissioning a product—Kwiksell, a retail management tool and has let go of employees whose roles have consequently become redundant.
“The company is indeed letting go of employees, but the number is 13 out of the current workforce of 110,” Olobayo said.
Olobayo further explained that the company is not dissolving but evolving into a different kind of business and mindset.
Co-CEO Yomi Adedeji added, “We started out as an enterprise-focused company, but we have been evolving into a retail business that offers entrepreneurs and individuals a roadmap for their money. Today, we stepped into a new phase, which requires changing our enterprise DNA to a retail-focused DNA.”
In a tweet posted last night, the company announced a pivot to a direct-to-consumers (D2C) operating model where it will “deliver revenue to selected entrepreneurs”. It also noted that its product, Eyowo X—which suffered a brief pause after the Central Bank of Nigeria (CBN) pulled its licence in May—would not be affected.
Earlier this year, employees at the company revealed that it had suffered several setbacks stemming from struggling products. At the time, the company admitted that its setbacks had caused several salary delays for its employees.
