Okra Shuts Down After 6 Years, Returns $4M-$5.5M to Investors

Okra, a pioneering open banking startup in Nigeria, announced its shutdown in May 2025, six years after its inception. The company, co-founded by Fara Ashiru Jituboh and David Peterside, was renowned for its API infrastructure that facilitated seamless connections between bank accounts and third-party applications. The decision to close operations was attributed to strategic and market challenges, as cited by Kernel, the UK-based firm that acquired Okra's assets.

Okra's journey began in 2019 with a mission to revolutionize financial access across Africa. The startup quickly gained traction, partnering with major Nigerian banks and platforms such as Renmoney, Branch, Bamboo, and AIICO Insurance. By 2020, its API usage surged by 175% in a single quarter, solidifying its position as a leader in Nigeria’s fintech scene. The company's success attracted significant investment, totaling $16.5 million, which supported its expansion across Nigeria and into beta testing in Kenya and South Africa.

In October 2024, Okra made a strategic pivot by launching Nebula, a cloud infrastructure product aimed at addressing the high costs of foreign cloud services. This move was driven by the need to offer a cost-effective, naira-based alternative in response to Nigeria’s naira depreciation, which increased operational costs for local businesses. Nebula positioned Okra alongside other homegrown cloud providers, targeting businesses seeking to reduce reliance on expensive foreign infrastructure.

Despite having three years of runway left from its $16.5 million in funding, Okra’s leadership decided to wind down operations. The decision was not driven by a funding crunch but by strategic and market challenges. The launch of Nebula, while innovative, faced significant hurdles, including competition from global giants like AWS and Google Cloud. Additionally, the broader African fintech landscape saw a wave of startup shutdowns, as investors increasingly prioritized profitability over growth. Okra’s pivot to cloud services may have strained its resources and diluted its focus on open banking, where it had established expertise.

In a rare move for African startups, Okra chose to return its remaining funds, estimated at $4 million to $5.5 million, to investors. The company had spent roughly 60-75% of its $16.5 million, leaving a substantial balance after providing generous severance packages to employees. Older employees reportedly received up to six months’ salary, while newer staff received bonuses. Ashiru Jituboh’s transparency about the shutdown and fund return underscores Okra’s commitment to ethical practices.

Okra’s closure is a sobering moment for Africa’s fintech sector, which has seen record-breaking investments but also increasing scrutiny. The decision to return funds reflects a focus on maintaining investor trust, a critical factor in Africa’s evolving startup ecosystem. Okra’s contributions to open banking, however, remain undeniable, having laid the groundwork for financial interoperability across Nigeria and beyond. As the continent’s fintech revolution continues, Okra’s shutdown serves as a reminder of the need for resilience, adaptability, and clear paths to profitability. For now, the industry watches to see who will carry forward the mantle of open finance in Africa.