Nigerian fintech Payday is currently engaged in discussions regarding a potential acquisition, following its recent successful seed funding round that garnered $3 million a mere six months ago. CEO Favour Ori has confirmed the ongoing negotiations with potential acquirers.
However, the path to acquisition is riddled with complexities due to a series of adverse media reports and internal issues. In August, Payday publicly admitted to temporarily suspending customer account access due to fraudulent activities that resulted in financial losses for some of its users.
Notably, the company made the somewhat puzzling decision to reduce the salaries of certain Nigerian staff members in July, raising eyebrows considering the substantial $3 million funding injection just three months prior.
Moreover, Payday has seen a string of departures among its employees in recent months, including the departure of co-founder and Chief Operating Officer (COO) Ogechi Obike. In her departing statement, Obike cited a misalignment of goals as her primary reason for leaving.
Reports suggest that Favour Ori, the company’s founder, has proven to be a challenging collaborator, with his impulsive decision-making occasionally leading to costly consequences. For instance, some customers incurred financial losses while attempting to create virtual cards, and others faced disruptions in accessing their accounts when Favour abruptly switched Payday’s Mastercard provider without conducting thorough due diligence.
Despite these significant challenges, Payday is actively exploring potential acquisition opportunities. Whether the company can successfully secure a buyer amidst negative publicity and internal turbulence remains uncertain.
About Payday Fintech
Payday is a remittance application that facilitates rapid and borderless online payment services for Africa. This platform swiftly connects its users with extensive global opportunities, all within a matter of seconds.
Furthermore, it’s worth highlighting that the Payday App serves as the flagship product of TalentMatch Inc, a company established by two accomplished and forward-thinking African individuals, Mr. Favour Ori and Dr. Rex Idaminabo.
Together, they have harnessed their intellect and dedication to enhance employment opportunities in the technology sector in Africa, and their collaborative efforts have given rise to the remarkable invention known as the PAYDAY App. This innovative creation is aimed at facilitating seamless cross-border payments across the African continent.
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