The downfall of African fintech startup Dash
The young company recently shut down after quickly raising $85M
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.
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