In light of the recent report of Eyowo shutting down its operations, the embattled financial company has denied the development while also appearing to refute the insinuations contained in the mail it sent to its staff and stakeholders.
The company now claims it is not shutting down, rather, it is pivoting into a financial technology platform that provides “financial connectedness and intelligence for everyday money and living choices to everyone with a smartphone“. The company revealed this in an official statement on its Twitter account.
The statement came after a Technext report that the financial technology company was shutting down its operations following a poor Q1, This was contained in an email sent by the company to its staff detailing its plan to relieve most of them of their jobs in the wake of the negative development.
The excerpts read:
“We want to prioritise providing intelligence for better decision-making to our users in their money and life choices, as such, we will no longer offer the inventory capabilities of Kwiksell while its payment services remain the same.“
“This change will not in any way affect our product (Eyowo X) in the market and the capabilities we currently provide our users including the ongoing improvements to restore all services It will only enhance it with more intelligence“, it further states.
The company did not provide clarifications to statements it made in the mail concerning “wrapping up” Softcom and Eyowo. It also did not properly clarify what it meant by “dissolving its processes, procedures, responsibilities and departments.” However, the company did say that 11% of its workforce would be affected by the “pivot in business and operating model.”
In an exclusive chat with Technext, Adebanjo Tomiwa, the company’s Lead, SME Business, says, the mail was meant to communicate the shutting down of some roles that became redundant within the company, and not to shut down the entire business. When prompted further to give clarifications on what some statements made in the mail meant, he didn’t.
The company isn’t shutting down, that mail was to let people know that redundant roles are been shut off and more Focus would be put on existing products- Eyowo X and Eyowo Office (For businesses) as well as letting the staff who would be retained know that salaries would be adjusted to meet new Nigerian economic realities.
Tomiwa Adebnjo, Eyowo’s Lead, SME Business.
Report on Eyowo’s Shutting down
Technext had earlier reported that the company is looking to shutdown its operations according to the contents of a mail sent to its employees and seen by Technext. The development was also confirmed by a source within the company.
In the mail which the company didn’t deny, Eyowo said “We are wrapping up Softcom and Eyowo as you know it. This means all our processes, procedure, responsibilities and departments have all been dissolved.”
This is contrary to what is said in its statement, that it was only redesigning the same internal processes, procedures and departments, that have been dissolved, to enable its new operating model.
The company also said in its statement that it was laying off only 11% of its workforce. This is contrary to what it told its employees in the mail; that it will be ”putting work to an end for MOST people,” while retaining only “a small group of staff” focused on product innovation and supporting customers in the market.
We can categorically state that the fintech was part of the 47 microfinance banks whose licences were withdrawn by the central bank of Nigeria (CBN). According to the CBN, their licenses were revoked because they were inactive, insolvent, failed to submit returns, shut down, or stopped conducting banking business as they were licensed for longer than six months.
However, at the beginning of the month, Yomi Adedeji, the co-CEO said that the company would soon resume its financial services using its Payment Solution Service Providers (PSSP) licence. Adedeji disclosed this in an update provided to its customers where he said that the bank is now 98.8 per cent ready to resume its activities, stressing that as one of the 75 companies licensed by CBN as PSSPs, Eyowa will continue providing its payment services.
This phase has been characterised by its customers expressing concern over their inability to make transactions. However, Eyowo said there was no cause for alarm, pledging “We remain committed to ensuring the security of your money and apologise for any inconveniences that you will experience in this period.”
Users of the platform have also stated that they were unable to complete several transactions that were simple and easy. Customers occasionally encounter issues that prevent them from finishing transfers or withdrawing their money.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
