Dash, the Ghanaian fintech trailblazer aiming to revolutionize cross-border payments for Africans by seamlessly connecting mobile money wallets, has officially closed its doors. The news of the startup’s shutdown broke through WeeTracker, signaling the end of its ambitious journey.
Ambitious Beginnings
Established in 2019 by Prince Boakye Boampong, Dash drew significant investor enthusiasm for its mission to establish interoperability between mobile money wallets and bank accounts across Africa. The ultimate goal was to simplify and enhance the efficiency of money transfers across the continent.
Over its five-year lifespan, Dash successfully secured substantial funding, totaling an impressive $86.1 million. Notably, the startup secured $32.8 million in a seed round in 2021, marking it as the second-largest seed round for any African startup. Insight Partners led this round, with participation from notable investors such as Global Founders Capital, 4DX Ventures, and ASK Capital. Dash continued to attract funding through convertible notes and debt financing from October 2021 to 2022.
Read Also: Closing Chapters: Dash Fintech Shuts Down Operations
Meteoric Rise and Skepticism
In 2021, Dash reported extraordinary growth figures, boasting the processing of transactions totaling $1 billion and acquiring a million users across Ghana, Nigeria, and Kenya. However, skepticism regarding the accuracy of Dash’s user numbers and metrics emerged in February, leading to the suspension of CEO Prince Boakye Boampong. Internal audits later confirmed Boampong’s manipulation of user numbers, leading to his termination. Kenneth Kinshua took on the mantle of CEO.
Unraveling Finances
Recent reports suggest that the damage inflicted on Dash was irreversible by the time Kinshua assumed leadership. Another audit revealed an unaccounted-for shortfall of at least $25 million in the company’s accounts. With a reported monthly burn rate of $500,000 and no revenue, Dash’s primary obstacle appeared to be its high operational costs, compounded by operations in five countries.
WeeTracker reports that Boampong, the former CEO, earned $50,000 per month and allegedly diverted at least $8 million for personal use, including the acquisition of property and luxury cars. Boampong has yet to publicly address these allegations.
Source: Bendada