South African tech start-up, Snapt has annoucned that it is shutting down, and analysts say it is due to lack of funding.
Founded in 2012, Snapt is a software company that “provides load balancing, acceleration, security and caching for websites, applications and services”. Simply put, Snapt helps make websites and apps faster and more responsive.
In 2015, it reported that 85% of its client base was in the US and proceeded to establish an independent sales and marketing arm there. At the time, CEO Dave Blakey told Disrupt Africa that the company was aiming at achieving a 1,000% annual growth rate.
By 2017, the company had reportedly acquired 10,000 customers across 50 countries, achieving year-on-year growth of 400% in both 2014 and 2015.
More recently—in May 2022—Snapt launched an AI-powered security package, Snapt Nova, that was set to help over 3.9 million Kubernetes users optimise production of applications.
After all these feats, Snapt is running out of funding.
So far, the startup has disclosed over $4 million raised in funding: a $1 million seed round in 2016 led by Convergence Partners, and a $3 million Series A round in 2018.
Its Series A raise is Snapt’s last-known publicly disclosed raise. Crunchbase reports that the start-up raised $3.4 million last year, but that could not be confirmed.
“Given recent unforeseen events, outside of our control, Snapt has been left with no option but to cease operations immediately, as we believe this is in the best interests of our staff and clients. We are extremely saddened by this, especially given the recent growth of the business, and grateful for all the amazing interactions we’ve had with our clients over the years,” the company said to Disrupt Africa.
Snapt is the third-known start-up to lock down its doors after Kenyan foodtech Kune, agritech WeFarm, and Notify Logistics. Sky.Garden, a Kenyan B2C marketplace, may also be closing down in October after CEO Martin Majlund announced to employees that the company was almost out of money.
