Nigerian wealthtech startup Cova, co-founded by Olu’yomi Ojo and Yomi Osamiluyi, is closing down on February 10, 2024, citing various challenges.
In an email to users, the co-founders explained the tough decision, emphasising the importance of acting in the best interest of investors. Subscription refunds will be processed by February 13.
Despite initially providing a valuable solution, Cova struggled to gain traction, as revealed in Olumide Soyombo’s memoir, Vantage. Ojo, in an email to investors, highlighted the financial evaluation, stating it’s better to prioritise investors and stakeholders rather than exhaust funds with no clear path to profitability.
Established in December 2021, Cova aimed to be a “single source of truth” for users’ assets. The platform raised at least $800,000 from investors, including Soyombo, offering services to aggregate, manage, and track assets globally.
Users could connect to various financial platforms, from banks to investment apps and crypto-wallets, with subscriptions ranging from $10 to $100 per month or year.
Ojo acknowledged the hurdles, stating, “What we do is still new, and people are not yet used to it. So they have many questions, and we have to earn their trust.”
Despite challenges such as customer demands for deeper integration and building trust, Cova faced limitations in syncing bank accounts to users outside Nigeria, the UK, and the US.
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