Exclusive: With three years of runway left, Kippa explains why it exited agency banking
- Kippa announced an $8.4m raise in September 2022 for its agency banking business, KippaPay.
- Kippa has decided to retreat from agency banking after the 500,000 merchants it acquired struggled due to the Nigerian economy slowing down.
- Naira devaluation has affected Kippa's agency banking push, increasing the cost of hardware and impacting the company's revenues.
The decision by Kippa to retreat from its agency banking business is a setback for the company. The challenges faced, including the struggles of small businesses and Naira devaluation, highlight the difficulties of operating in the Nigerian market. However, Kippa's decision to focus on building valuable products and services for merchants shows a commitment to adapt and provide value in a challenging environment.
