The downfall of African fintech startup Dash

The young company recently shut down after quickly raising $85M

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I’m a bit late to the party, but still think this is a story worth telling. Earlier this month, Ghanaian fintech startup Dash, which initially showed great promise, made headlines for negative reasons as it announced the shutdown of its operations.

Here are a few key points:

• Founded in 2019 by Prince Boakye Boampong, Dash aimed to facilitate seamless money transfers between mobile money wallets and bank accounts in Africa.

• It experienced early success, raising significant funding ($85 million), reaching a valuation of over $200 million, and reporting impressive transaction volumes ($1 billion in processed transactions) and a growing user base across Ghana, Nigeria, and Kenya (five million claimed users).

• However, Dash encountered regulatory issues in Ghana in March 2022, leading to a suspension of its operations. The Bank of Ghana accused Dash of operating without the required approvals. Subsequently, allegations of financial impropriety surfaced, and the company initiated a forensic financial audit, placing its CEO, Boampong, on indefinite administrative leave. Kenneth Kinyua assumed the role of interim CEO.

• While the audit results were not publicly disclosed, it was reported that they revealed fabricated financial information aimed at misleading investors. Dash also faced financial difficulties, with a high monthly burn rate and allegations that Boampong diverted millions of dollars for personal use.