Nigerian wealthtech startup Cova, co-founded by Olu’yomi Ojo and Yomi Osamiluyi, is set to shut down on February 10, 2024, citing “several factors” that led to this difficult decision, according to an email sent to users on January 24.
The co-founders, including ex-CEO Ojo, expressed the complexity of the decision, emphasizing that it was not made lightly. Subscription refunds are scheduled to be processed on or before February 13.
In his memoir “Vantage,” released in August 2023, prominent Nigerian angel investor Olumide Soyombo revealed that, despite providing a crucial solution, Cova struggled to gain traction two years into its existence. Ojo, in an email to investors, highlighted the careful evaluation of their financial situation, stating that with about a year of runway left, it was more prudent to act in the interest of Cova’s investors and stakeholders rather than deplete the funds without a clear path to profitability.
Co-founded in December 2021, Cova aimed to be a “single source of truth” for users’ assets, securing at least $800,000 in funding, including from Soyombo. The platform allowed users to aggregate, manage, and track assets, offering subscription plans ranging from $10 to $100 per month or year.
Users could connect their Cova profiles to various financial accounts and investment platforms globally, including local and international bank accounts, savings apps like Piggyvest and Cowrywise, and crypto wallets. Cova also facilitated the tracking of landed properties.
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Cova Shutdown Announcement
Although the startup claimed a global user base in the “thousands,” it noted that only users in Nigeria, the UK, and the US could sync their bank accounts. Ojo acknowledged challenges faced by Cova, such as customer demands for deeper integration and the need to build trust in a novel service.
The shutdown announcement clarified that this Cova is distinct from the Cameroonian insurtech startup, also named Cova, backed by Google Black Founders Fund Africa in 2022. Despite Cova’s closure, other startups in Africa, like Twinku, continue to offer all-in-one asset management platforms.
