Financing problems lead to closure of Nigerian banking innovation company Okra in May 2025
In a surprising turn of events, Nigerian open-banking startup Okra has announced its closure, effective from May 2025. The reasons behind this decision remain somewhat elusive, but available information sheds light on a series of challenges that may have contributed to the company's demise.
One of the primary factors seems to be the financial strain caused by the surge in dollar-denominated cloud bills, following the naira's depreciation in 2023-24. This increased operational costs and put pressure on Okra's financial resources.
The startup, which received approximately $16 million in funding from global investors, found itself outmatched by better-funded rivals Mono and Stitch, which raised $17.6 million and $52 million, respectively. The competitive landscape, particularly in open banking, may have played a role in Okra's struggle to maintain its position.
Another potential factor is the leadership changes within the company. The departure of co-founder David Peterside in 2022 and the subsequent lack of a clear successor could have led to shifts in strategy or momentum. Fara Ashiru Jituboh, another co-founder, has since stepped down to join UK startup Kernel as head of engineering.
Okra's diversification strategy, as evidenced by the launch of Nebula, a cloud-services spin-off, may have added to its challenges. If these initiatives did not yield the expected results, they could have compounded the overall difficulties faced by the company.
External economic conditions, regulatory changes, or shifts in investor sentiment could also have impacted Okra's viability. It's worth noting that Nigeria's long-awaited open-banking rules were not enforced until August 2025, potentially stalling revenue growth for API providers like Okra.
Despite these challenges, Okra is reported to have handled its shutdown responsibly. Investor funds have been returned, and support has been provided to employees, signifying a managed exit process led by former CEO Fara Ashiru Jituboh.
The CBN's final open-banking launch date coincides with Okra's financial difficulties, and the remaining staff have been informed that both the core API business and Nebula have been discontinued. As of now, no public statement has been issued regarding Okra's closure.
The collapse of Okra underscores the challenges faced by startups in the African open-banking sector. As the industry continues to evolve, it will be interesting to see how other players navigate these complexities and carve out their respective places in the market.
[1] TechCabal. (2025, May). Okra Shuts Down: What Went Wrong? [Online]. Available: https://techcabal.com/2025/05/24/okra-shuts-down-what-went-wrong/ [2] Ventureburn. (2025, May). Nigerian Open-Banking Startup Okra Shuts Down Amidst Financial Struggles [Online]. Available: https://ventureburn.com/2025/05/nigerian-open-banking-startup-okra-shuts-down-amidst-financial-struggles/ [5] The Guardian Nigeria. (2025, May). Okra Shutdown: A Cautionary Tale for Nigerian Startups [Online]. Available: https://guardian.ng/business-services/okra-shutdown-a-cautionary-tale-for-nigerian-startups/
Technology played a significant role in Okra's financial struggles, with the surge in dollar-denominated cloud bills following the naira's depreciation in 2023-24 significantly increasing operational costs. General-news outlets have reported on this event, shedding light on the challenges faced by Nigerian startups in the open-banking sector.
