Dash, a Ghanaian fintech startup with a mission to connect mobile money wallets and bank accounts across Africa, has confirmed that it is shutting down operations. The startup’s closure was first reported by WeeTracker.
Founded in 2019, Dash raised $86.1 million in five years from big-name investors, including Insight Partners, Global Founders Capital, 4DX Ventures, and ASK Capital. In 2021, Dash began sharing eye-popping growth numbers, claiming to have processed transactions worth $1 billion and acquired a million users in Ghana, Nigeria, and Kenya.
In February 2022, suspicions about Dash’s user numbers and metrics were raised, and the company’s CEO, Prince Boakye Boampong, was suspended. Internal audits revealed that Boampong had misrepresented and exaggerated user numbers. He was eventually fired and replaced by Kenneth Kinshua.
Further audits revealed a shortfall of at least $25 million in the company’s accounts. Dash’s primary problem appeared to be its high overhead, as it had operations across five countries and a reported burn rate of $500,000 per month.
Boampong was reportedly earning $50,000 per month and allegedly diverted at least $8 million in company funds to buy property and luxury cars. He has not spoken publicly about any of the allegations.
Why did Dash shut down?
Dash shut down due to a combination of factors, including:
- Fraud: The company’s former CEO, Prince Boakye Boampong, is alleged to have misrepresented and exaggerated user numbers and diverted at least $8 million in company funds to buy property and luxury cars.
- High overhead: Dash had operations across five countries and a reported burn rate of $500,000 per month.
- No revenue: Dash did not generate any revenue.
Implications on the African Fintech Industry
The closure of Dash is a setback for the African fintech industry, as the company was one of the most promising startups in the space. However, the industry is still young and growing rapidly, and there are many other companies working to solve the same problems that Dash was trying to address.
The allegations of fraud at Dash are also a reminder that the African fintech industry is still relatively unregulated. This means that investors and consumers need to be careful when choosing to do business with fintech startups.
