Top 7 startup that failed in Nigeria and Why
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Startup is an experiment, it can fail or succeed, if it fail, the next thing is to analyse the startup and look for the reason, this will equip entrepreneur in their next venture.
But why wait till your startup fail before you learn the cause of it failure!!!
In this post we list popular Nigeria startup that have gave up the ghost and the reason they did.
Olx is a classified adds, that allow people to sell their goods and services for free. It was founded by Nasper.
It came into Nigeria in 2012 with the hope of having great ROI, but it was a dashed hope as they leave the country 3years later.
Why did Olx failed
From the outside, it look like nothing was wrong with OLX, but inside a lot that lead to it crumble was going on.
Olx assumption about Nigeria was wrong, their Projected ROI was Nothing but a guess work. When they get to 2 years + and the revenue is not moving, they decided to leave Nigeria and Kenya market for South Africa whose market value can give a good ROI to them.
In short, OLX leave Nigeria because of Low ROI
Camplus has a great vision; to connect student together for the purpose of buying and selling, it was a good idea, the #4 million revenue they make in their first four months could testify to it, but they still fail
Why did Camplus failed
Camplus had a badluck, they came in during recession, so the cost of running the business multiplied therefore leading to it downfall.
In short, Bad timing kill Camplus
Caketunes is a marketplace, founded by Ability Elijah in the hope of selling tunes and video to firms.
It has a clean business model, but it still fail.
Why did Caketunes failed
It was Competition that crumple Caketunes. It is easy to compete with Company or startup that charges their customers, but competing with one that offer their product free would be disaster.
Caketunes was competing with tunes producer who give out the same quality of tunes for free.
In short, Competition and lack of research kill Caketunes.
Showroom have no other mission than to help Carpenter in Nigeria sell their goods. It created a platform where carpenters can post picture of their finished goods.
Initially it was going fine for showroom untill scaling becomes their problem, they couldn’t scale the startup for over 12 years of it existence, so they pack up
In short, Showroom failed because they couldn’t Scale.
Oyapay was founded by three people, but spearheaded by Abdulhamid Hassan, It was a Finetech startup that enable people to send and receive money.
Oyapay was killing it with a lot of customers buying into the company.
Why did Oyapay fail
Oyapay failed not because of Economic downtown nor lack of customers, but because of Investment go wrong.
It happened that Hassan Collect some money from his uncle has an investment, when it times for the startup to move away from product market fit to onboarding mainstream customers and raised fund, Hassan’s Uncle refused to get his Investment diluted. This lead to the death of the startup.
Oyapay bite the dust, because of ‘Investment go wrong”
It was Cofounded by Rocket Internet Hordes a Brazilian company and Bankole Cardoso of Nigeria. It enter Nigeria market in 2013 with the aim of expanding its market reach, unknowingly that Africa market is not the same with that of Latin America.
Why did Easy Taxi failed
Easy Taxi packed out of Nigeria in 2016, because of low turn out of customer and revenue.
In short, low revenue killed Easy Taxi
Oride was one of the startup release by Operamini, it was a ride hailing startup that focus on bike as means of transportation.
Oride closed shop as a result of Lagos Government Policy; that stop bike riding activities in Lagos.
Since 90% of their customers were in Lagos, they have no choice than to leave the startup.
In short, Oride death was as a result of Government Policy.
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