The African Startups That Imploded in 2025: Fraud, Missing Millions, and Public Meltdowns
- Thepeer, a Nigerian fintech, shut down after co-founder Sultan Akintunde alleged $1.2 million in missing funds due to fraud.
- Paystack's co-founder Ezra Olubi was fired over misconduct allegations, raising questions about reputational risk and termination processes.
- M-KOPA faced a public power struggle when co-founder Chad Larson accused the board of unfairly exploiting employees through share buybacks.
The controversies within the African startup ecosystem underscore a pressing need for stronger governance frameworks and accountability measures. As the landscape evolves, founders must prioritize transparency and formal agreements to mitigate risks associated with internal disputes and fraud. Investors should also enhance their due diligence processes to ensure operational integrity within their portfolio companies.
