Cova, the Nigerian wealthtech startup co-founded by Olu’yomi Ojo and Yomi Osamiluyi, is set to shut down due to what the co-founders describe as “several factors.”
The announcement came via an email sent to Cova users on Tuesday, revealing that the platform will cease operations on February 10, 2024.
“This was an extremely difficult decision, one that was not made lightly,” stated the email. The co-founders assured users that subscription refunds would be processed on or before February 13.
Cova, founded in December 2021 with the aim of being a “single source of truth” for users’ assets, raised at least $800,000 from investors, including prominent angel investor Olumide Soyombo. The platform allowed users to aggregate, manage, and track various assets during their lifetime, while also facilitating the discovery and claiming of assets by beneficiaries after the user’s passing.
In his business memoir “Vantage,” Olumide Soyombo acknowledged that Cova provided an essential solution but revealed that, two years into its existence, the platform failed to gain traction. Ojo, in an undated email to investors documented in Soyombo’s memoir, explained the difficult decision, citing the need to act in the interest of investors and stakeholders rather than depleting funds without a clear path to profitability or decent revenue.
Despite raising substantial funds and having a global user base in the “thousands,” challenges surfaced for Cova in its first year. Ojo highlighted users’ increasing demands for deeper integration, especially those with multiple bank accounts in different countries. Trust also emerged as a hurdle, with the unfamiliarity of the service and reluctance to consider death as an event to prepare for, particularly in African countries.
Cova’s demise comes as a blow to the wealthtech sector, raising questions about the challenges faced by startups providing asset management solutions. While some startups are incorporating next-of-kin details for seamless asset transfer after a user’s demise, others are also entering the space with comprehensive asset management platforms.
It’s essential to note that this Cova is distinct from the Cameroonian insurtech startup with the same name, backed by the Google Black Founders Fund Africa in 2022.
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