Nigerian Wealthtech Cova Sets to Shut Down After Two Years of Operations

Cova, a Nigerian wealth tech startup that enables users to track their assets in one place, is set to cease operations on February 10, 2024. Oluyomi Ojo and Yomi Osamiluyi, who co-founded the startup in December 2021, communicated this decision to users via email on Tuesday, January 24, citing "several factors" that led to the difficult choice of shutting down the platform.

In the email, the co-founders expressed the gravity of the decision, stating, "This was an extremely difficult decision, one that was not made lightly." As part of the closure process, users can expect refunds for their subscriptions on or before February 13, marking the conclusion of Cova's operations.

Cova, known for offering a comprehensive platform enabling users to track their assets in one centralized location, has raised at least $800,000 from investors, including Soyombo. The startup positioned itself as a "single source of truth" for users to aggregate, manage, and track all their assets, emphasizing the platform's utility even in posthumous asset discovery.

Subscription plans offered by Cova ranged from $10 to $100 per month or year, catering to users looking to link their profiles to various financial platforms. This included local and international bank accounts, savings apps such as Piggyvest and Cowrywise, investment platforms like Risevest and Bamboo, and even crypto-wallets. The platform also facilitated the tracking of landed properties.

Despite amassing a global user base in the "thousands" by 2022, with synchronization capabilities limited to users in Nigeria, the UK, and the US, Cova faced challenges in its inaugural year. Co-founder Oluyomi Ojo acknowledged the evolving needs of users, with requests for deeper integration and the complexity of trust-building, especially in Africa, where discussions about preparing for one's demise are often avoided.

While the exact reasons for Cova's closure remain unclear, it aligns with a broader trend in the startup ecosystem. Some companies faced financial constraints leading to closures in the previous year. This announcement coincides with an emerging trend in the industry, as startups increasingly focus on providing all-in-one asset management platforms and requesting next-of-kin details for seamless asset transfer after a user's demise. Twinku and other rising African startups indicate the evolving dynamics within the wealth tech sector.