Dash, a fintech business based in Ghana that aims to link bank accounts and mobile money wallets all throughout Africa, has announced that it will cease operations. WeeTracker broke the news that the startup has closed.
. Prince Boakye Boampong launched the startup Dash in 2019. When investors heard about the issue the company hoped to address, they became very interested. Dash was working to make mobile money wallets and bank accounts interoperable across Africa; its solution would have made transmitting money across Africa simple and effective.
The firm attracted high-profile investors and raised $86.1 million in five years. In 2021, it completed a $32.8 million seed round, the second largest seed round for an African firm. The round was co-led by Insight Partners and included participation from Global Founders Capital, 4DX Ventures, and ASK Capital. From October 2021 through October 2022, it continued to generate further funds through convertible notes and debt financing.
Dash started disclosing startling growth figures in 2021. According to one article, Dash claimed to have handled transactions totaling $1 billion and claimed to have a million users from Ghana, Nigeria, and Kenya. Those figures showed a fivefold rise in users in just five months.
At least two media expressed doubts about Dash’s stats and user base in February, and Prince Boakye Boampong was relieved of his CEO duties later that same month. Internal checks of Dash’s data revealed that Boampong had inflated and overstated the number of users. Kenneth Kinshua eventually took his place after being sacked.
According to recent information, the damage was already done when Kenneth Kinshua took over as CEO. According to the journal, there was a shortfall of at least $25 million that was unaccounted for after a second audit of the company’s financial records. Dash’s main issue looked to be its high overhead because it had operations in five different countries and had a claimed burn rate of $500,000 per month with no revenue.
As reported by WeeTracker, Boampong was earning $50,000 per month and allegedly diverted at least $8 million. There are claims that the money was used to buy property and luxury cars. Boampong has not spoken publicly about any of the allegations