Cova To Cease Operations Due To Lack of Traction

Cova, a Nigerian wealthtech startup co-founded by Olu’yomi Ojo and Yomi Osamiluyi, will be shutting down due to what they termed as “several factors,” according to an email sent to users on Tuesday, January 23. The email stated that the decision was a difficult one, but it was necessary to close operations on Feb. 10, 2024. Subscription refunds will be issued on or before Feb. 13.

Cova was established in December 2021, with the aim of providing a single source of truth for users’ assets. Users could link their Cova profile to their local and international bank accounts, savings apps, investment platforms, crypto-wallets, and even track their landed properties. The startup raised at least $800,000 from investors, including Olumide Soyombo, a leading angel investor in Nigeria.

Although Cova provided an essential solution, two years into operation, the co-founders realized that the product was not gaining traction. In an undated email to investors, Ojo explained that the company was carefully evaluating its financial situation and concluded that it was better to act in the interest of Cova’s investors and stakeholders than to continue spending funds without a clear path to profitability or decent revenue.

In his business memoir, Vantage, Soyombo stated that Cova was a promising venture, but its user base was in the “thousands” globally. Cova’s co-founder, Ojo, acknowledged that customers’ needs kept increasing, and they had multiple questions about the platform’s trustworthiness. Cova’s closure highlights the competitive nature of the wealthtech industry and the challenges startups face in gaining traction and building trust with users.