Nigerian Edtech Startup Edukoya Ceased Operations 4 Years after Securing $3.5m

Nigerian edtech startup Edukoya has officially ceased its operations, as confirmed in a statement to stakeholders obtained by Nairametrics.

This development follows the company’s successful fundraising of $3.5 million in 2021, which marked one of the largest pre-seed funding rounds in Africa.

Edukoya identified several key challenges, including market readiness, connectivity issues, and limited access to devices, as significant obstacles to its success.

Moreover, the startup faced difficulties in achieving mass-market adoption due to low disposable income levels and adverse macroeconomic conditions.

In its announcement, Edukoya emphasized the struggles it encountered while trying to scale its synchronous learning model. The company noted that it faced considerable challenges in market readiness and that attempts to pursue a merger or acquisition were unsuccessful. Ultimately, Edukoya concluded that it was ahead of its time and opted to wind down operations, returning capital to its investors.

“In many ways, Edukoya was too early for its time -the infrastructure and economic conditions needed to support our vision at scale simply aren’t yet in place across our target markets. 

“After exploring partnerships, M&A, and business model pivots without viable solutions, we’ve chosen to wind down operations and return capital to investors rather than deplete resources chasing scale in a challenging market.  

“This strategic shutdown – though counterintuitive in “persist at all costs” startup culture – creates better outcomes for everyone: our investors can redeploy capital, our team can transition with dignity, and we preserve our vision’s integrity instead of compromising to survive,” the company stated.

Nigerian edtech startup Edukoya has officially ceased its operations, as confirmed in a statement to stakeholders obtained.

This development follows four years after the startup secured $3.5 million in 2021, marking it as Africa’s largest pre-seed funding round.

The company identified several significant challenges, including market readiness, connectivity issues, and limited access to devices.

Moreover, the lack of disposable income and adverse macroeconomic conditions hindered widespread market adoption.

Difficulties in scaling synchronous learning

In its announcement, Edukoya pointed out the obstacles it faced in expanding its synchronous learning model. The company reported substantial challenges related to market readiness, and efforts to pursue a merger or acquisition were unsuccessful. Ultimately, Edukoya concluded that it was ahead of its time and opted to wind down operations, returning capital to its investors.

Founded in 2021, Edukoya aimed to transform online K-12 education in Africa by providing digital learning resources and online tutoring for students and parents.

The startup was established by Honey Ogundeyi, who drew inspiration from her own experiences with Nigeria’s education system. Having studied in the UK, Ogundeyi noted the stark differences between Nigeria’s educational framework and that of Western countries. 

In a 2021 interview, she remarked, “Even the most brilliant students can be let down by the system.” She further stated, “If my parents hadn’t made the sacrifice for me to go abroad, all the successes I’ve had in my career would have been completely different.”

Her commitment to tackling educational challenges was intensified by her children’s experiences.

“Seeing that same problem of going to school and struggling with some subjects made me look into getting after-school teachers. It struck me that this issue has remained largely unchanged for the last 50 years. Despite innovations across different industries, Africa’s education system has stagnated,”

Edukoya, although it ultimately ceased operations, achieved notable progress in its goal to transform online education. W

In a communication to stakeholders, the platform reported that it reached over 80,000 students, addressed more than 15 million inquiries, and facilitated thousands of live classes each day. Additionally, the startup incorporated artificial intelligence into its offerings to improve the learning experience.