Dash, the Ghanaian fintech has closed its doors after a tumultuous run. The company failed to realize its vision of solving cross-border payments for Africans by connecting mobile money wallets.
Dash, the Ghanaian fintech company whose mission is to connect mobile money wallets and bank accounts across Africa, has confirmed that it is shutting down its operations. The startup’s closure was first announced by WeeTracker
. Dash was founded in 2019 by Prince Boakye Boampong and investors were excited about the problem the startup wanted to solve. Dash strived to ensure interoperability between mobile money wallets and bank accounts across Africa; his solution would have made sending money across Africa easy and efficient.
The startup raised $86.1 million in five years and attracted renowned investors. It raised $32.8 million in a seed round – the second largest funding round for an African startup – in 2021. Insight Partners led the round and other investors, such as Global Founders Capital, 4DX Ventures and ASK Capital participated. It then raised additional funds in the form of convertible notes and debt financing from October 2021 to 2022.
In 2021, Dash started sharing eye-popping growth numbers. According to one publication, Dash claims to have processed transactions worth $1 billion and said it has acquired one million users in Ghana, Nigeria and Kenya. These numbers represented a 5x increase in users in just five months.
In February, at least two publications reported suspicions about Dash’s user numbers and settings, and later the same month, Prince Boakye Boampong was suspended as CEO. Internal audits of Dash’s numbers proved that Boampong had misrepresented and exaggerated user numbers. He was eventually fired and replaced by Kenneth Kinshua.
New reports suggest the damage was already done by the time Kenneth Kinshua became CEO. The publication claimed that during another audit of the company’s accounts, there was a deficit of at least $25 million that had not been accounted for. With a reported burn rate of $500,000 per month and no revenue, Dash’s main problem seemed to be its high overhead costs, as the company operated in five countries.
As WeeTracker reports, Boampong earned $50,000 a month and allegedly embezzled at least $8 million. Some claim the money was used to buy properties and luxury cars. Boampong has not spoken publicly about any of these allegations.