PayDay, a Nigerian fintech startup, has been in turmoil as it discusses a potential acquisition. The company, which raised $3 million in a seed funding round led by Moniepoint six months ago, is reportedly negotiating with potential buyers.
Favour Ori, CEO of PayDay, confirmed that the company actively engages in conversations with interested parties. Earlier reports had suggested that Moniepoint was considering acquiring PayDay, but the deal did not materialize. Despite this setback, PayDay remains in talks for a possible acquisition.
PayDay's journey towards acquisition has been fraught with challenges, including a wave of negative press. The company faced criticism in August after suspending customer accounts due to fraudulent activities. This move sparked accusations of misappropriating customer funds, further tarnishing the company's reputation.
Internally, PayDay also grappled with contentious issues, such as a salary adjustment that reduced wages for some Nigerian staff. The cuts, which amounted to 30-50% reductions, were attributed to the company's desire to align salaries with the Naira currency. Promised stock options as compensation have reportedly yet to materialize, leading to employee dissatisfaction.
PayDay's CEO, Favour Ori, faced criticism for his management style, characterized by making decisions without consulting the team and sudden changes to the platform that impacted customers negatively.
Amidst these challenges, Favour Ori's involvement in the company has diminished, with reports suggesting he is now focused on selling the company while working full-time at GitHub. PayDay's co-founder, Elijah Kingson, is employed at Revolut, another fintech firm.
As PayDay navigates acquisition talks, its future remains uncertain, with employees and customers closely watching developments that could shape the fate of the Nigerian fintech startup.
Source: Tech Cabal
