Nigerian wealthtech startup Cova, co-founded by Oluyomi Ojo and Yomi Osamiluyi, is set to cease operations on February 10, 2024. The co-founders revealed in an email to users on Tuesday, January 24, that the decision to shut down was prompted by "several factors," emphasizing the difficulty of making such a choice.
The email read, "This was an extremely difficult decision, one that was not made lightly." Subsequently, users can expect refunds for their subscriptions on or before February 13 as Cova wraps up its operations.
Established in December 2021, Cova aimed to be a "single source of truth" for users, providing a comprehensive platform to aggregate, manage, and track their assets. The startup also sought to aid beneficiaries in discovering and claiming assets posthumously, offering a distinctive service in the wealthtech sector.
Up until its closure, Cova offered subscription plans ranging from $10 to $100 per month or year. Users could link their Cova profiles to a variety of financial platforms, including local and international bank accounts, savings apps like Piggyvest and Cowrywise, investment platforms like Risevest and Bamboo, and even crypto-wallets. The platform also facilitated the tracking of landed properties.
In 2022, co-founder Oluyomi Ojo reported that Cova had amassed a global user base in the "thousands," with synchronization capabilities limited to users in Nigeria, the UK, and the US. However, the startup faced challenges in its inaugural year.
Ojo acknowledged these challenges, stating, "Customers keep needing more. For instance, we have users already asking for deeper integration. They have multiple bank accounts in different countries, and they want to connect them to COVA." He also highlighted the challenge of building trust, explaining that the concept of what Cova offered was still new, particularly in African countries where preparation for death is often avoided.
The exact reasons for the startup's closure remain unclear, whether it be the challenges outlined, financial difficulties, or a combination of factors. This decision aligns with a broader trend observed in the startup ecosystem, where some companies faced financial constraints leading to closures in the previous year.
Notably, the announcement coincides with an emerging trend in the industry, as some startups now request next-of-kin details for seamless asset transfer after a user's demise. Concurrently, other African startups, such as Twinku, are rising to provide all-in-one asset management platforms, reflecting the evolving dynamics within the wealthtech sector.
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