Earnipay, a Nigerian fintech startup, has let go of some of its staff to survive a tough funding climate as it focus on profitability and stability over fast expansion.
“This was a difficult but necessary decision,” said CEO and founder Nonso Onwuzulike.
Earnipay made headlines in 2022 after raising a $4 million seed round from top investors like Canaan and Ventures Platform. The company aimed to disrupt Nigeria’s payroll cycle with its earned wage access (EWA) product, letting workers withdraw part of their salary before payday.
It later expanded fast. The startup rolled out a payroll platform, a neobank for employees, and most recently, Earnipay Business, a suite of tools for small businesses.
But that growth came with a high price tag. According to Nonso, the company was spending four times its revenue, mostly on products outside its business lending line.
“We had hoped to grow into our cost structure,” Nonso admitted, “but some products aren’t generating enough revenue to justify the burn.”
In simple terms, Earnipay was building too much, too fast, and the money coming in wasn’t keeping up.
Why Now?
The broader environment for African startups is rough. In 2024, total funding for startups on the continent fell by 31% from the year before. Nigeria, once Africa’s top startup hub, only pulled in $331 million, falling behind both Kenya and South Africa.
Fintech still led the charts, pulling in over $880 million, but cash is now going to startups with clearer paths to profit. Investors are no longer betting big on scale alone.
Other African startups like Kuda, Chipper Cash, and 54gene have also cut jobs this year. It’s part of a growing trend which is focusing less on flashy growth, and more on making real money.
“Given today’s market conditions, raising more capital isn’t guaranteed,” said Nonso.
The New Plan: Earnipay will Stick to What Works
Going forward, Earnipay will focus on its most promising product which is business lending. That’s where the money comes in, and where they’ll now put most of their effort.
All other products will be scaled back. The company plans to stabilize its finances and stretch its runway, and how long it can survive without new investment.
To support those let go, Earnipay is offering:
- Two months’ severance pay
- Health coverage through year-end
- Discounted access to work laptops
- Job search assistance
“This decision does not reflect your contributions, you’ve helped build Earnipay into what it is today.”Nonso wrote to his team.
Can Earnipay Bounce Back?
The number of employees affected hasn’t been shared, but those who remain must help steer the company toward a leaner, more focused future.
For startups across Africa, the lesson here is that profitability beats growth in today’s market. Earnipay’s next chapter will test whether that mindset is enough to survive the downturn.
