Okra, a Nigerian fintech startup known for its open banking APIs, officially shut down operations in May 2025.
Founded in 2019, the Okra was once seen as a trailblazer in Africa’s financial data infrastructure space. Despite raising over $16.5 million in funding and onboarding major banks and fintechs, Okra ultimately closed its doors. Here’s why:
Key Reasons Behind Okra’s Shutdown
1. Failed Pivot to Nebula Cloud
In late 2024, Okra launched Nebula, a naira-based cloud alternative to combat Nigeria’s soaring dollar-based cloud costs. However:
- Adoption was slow, with businesses preferring AWS and Google Cloud.
- The pivot required significant resources to scale, which the company couldn’t sustain long-term.
2. Delayed Regulatory Support
- Nigeria’s Open Banking framework wasn’t enforced until mid-2025, long after Okra had built its API infrastructure.
- Monetization was difficult as key regulations lagged behind product development.
- Competition intensified from startups like Mono, Stitch, and Bloc, shrinking Okra’s market share.
3. Macroeconomic Pressures
- The Naira’s devaluation and inflation increased operational costs.
- Businesses cut back on new tech investments amid economic uncertainty.
4. Voluntary Closure and Ethical Exit
- Okra still had up to $5.5 million in cash when it chose to shut down.
- The company returned remaining funds to investors and offered generous severance packages to staff.
- This move earned Okra praise for its transparent and principled exit.
Timeline Summary
| Year | Milestone |
|---|---|
| 2019 | Okra founded by Fara Ashiru Jituboh and David Peterside |
| 2020–2022 | Raised $16.5M, gained major enterprise clients |
| Late 2024 | Pivoted to Nebula cloud platform |
| May 2025 | Operations wind down |
| July 2025 | Public confirmation of shutdown |
What’s Next for the Founders?
- Fara Ashiru Jituboh has joined UK-based startup Kernel as Head of Engineering.
- David Peterside, Okra’s co-founder, exited the company in 2022.
Lessons from Okra’s Shutdown
- Early product-market fit is key, especially in infrastructure-heavy sectors.
- Macroeconomic realities (like currency devaluation) can derail even well-funded startups.
- Regulatory alignment matters – building before the market is ready can backfire.
- Ethical closures set a new standard for African startups.
Editor, Techawkng.com. I am also a freelancer, part-time copywriter and I love solitude. Send us an email-admin@techawkng.com.
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