Okra has announced its shutdown in May 2025 due to strategic and market challenges, according to Kernel, the UK firm that acquired its assets.
Okra was known for its API infrastructure, which enabled simplified integrations between bank accounts and third-party applications. Okra launched in 2019 to transform financial access in Africa, partnering with Nigerian banks and platforms. By 2020, its API usage increased by 175% in one quarter. The startup secured USD 16.5 million in investments, enabling its expansion into Kenya and South Africa.
In October 2024, Okra launched Nebula, a cloud infrastructure product designed to provide a cost-effective, naira-based alternative to expensive foreign cloud services due to the depreciation of Nigeria’s naira. This strategic pivot aimed to help local businesses lower operational costs and position Okra among other local cloud providers.
Open Banking expertise
Despite having USD 16.5 million in funding and three years of runway left, Okra's leadership decided to shut down operations due to strategic challenges rather than a funding shortage. Their product, Nebula, faced competition from players like AWS and Google Cloud, while the African fintech market saw many startups closing as investors focused on profitability. Okra's shift to cloud services may have diverted attention from its core Open Banking expertise. Notably, Okra chose to return USD 4 million to USD 5.5 million to investors after spending 60-75% of its funds, providing severance packages to employees and showcasing commitment to ethical practices.
Okra's closure marks an important moment for Africa's fintech sector, which has experienced substantial investments and increased scrutiny. This decision reflects a commitment to maintaining investor trust within the evolving startup ecosystem. Despite its shutdown, Okra's impact on Open Banking and financial interoperability in Nigeria is notable. As the fintech revolution progresses, Okra's exit highlights the importance of resilience and clear profitability paths, with the industry looking to see who will advance open finance in Africa.
