On Tuesday, October 22, Woven Finance, a Nigerian fintech company, addressed confusion from earlier this year when news reports suggested it would shut down in Q1 2024.
The company clarified that an email warning customers of an impending shutdown was sent by mistake.
In a conversation with Techpoint Africa, Frank Ugwulali, Head of Products and Partnerships, explained that the email was intended for internal use but accidentally went out to customers. It included risk assessments and strategy reviews that customers misunderstood as a shutdown announcement.
Ugwulali noted that recent news about other startups closing added to customer anxiety. Although the company retracted the emails and issued clarifications, they still reached out to many customers to reassure them that Woven Finance was not shutting down.
Despite this incident occurring eight months ago, Woven Finance has continued to grow. Ugwulali shared that the company has increased its customer base recently and aims to be among the top five payment companies in Nigeria within the next three years.
To support this goal, the company is launching a brand refresh to reintroduce its services to customers. As a licensed payment solution service provider (PSSP), Woven Finance helps merchants receive payments through card payments and bank transfers.
Founded in 2020 by Adedeji Olowe, Woven Finance was one of the pioneers of virtual accounts in Nigeria. Ugwulali highlighted that the company stands out by providing actionable metrics for businesses and excelling in speed for both single and bulk payouts. He said, “We fit the boot in both circumstances.”
Woven Finance is also planning a lifestyle expo to showcase products like virtual accounts for easy transfers, QR codes for contactless payments, and payment links for remote transactions. Ugwulali noted that this event will help keep the company visible to users.
The Nigerian payment landscape has evolved significantly, with competition among fintech startups intensifying. Flutterwave and Paystack remain the dominant players in the space. Although some debate whether Africa needs more fintech companies, a 2022 McKinsey report indicated that 90% of transactions in Africa are still cash-based. To transition more of these cash transactions to digital platforms, the continent needs more financial institutions and robust payment infrastructures.
Woven Finance plans to leverage this cash-based volume by helping businesses integrate its payment infrastructure at the lifestyle expo. While opportunities exist for growth in Nigeria’s payment sector, Woven Finance must find creative ways to build trust with customers, especially in light of recent startup failures.
