Favour Ori, the owner of the fintech startup Payday, is reportedly considering selling the company, just six months after successfully raising $3 million in a seed round led by Moniepoint, a significant player in the Nigerian financial technology landscape.
According to TechCabal, Favour Ori, CEO of Payday, confirmed that the startup is actively engaging in discussions with potential buyers. He stated, “Active conversations are being had with people who reached out and expressed interest in buying.”
However, Payday has not been without its share of controversies. In a February update by Forsige, it was reported that Payday had allegedly defrauded its users. The report raised concerns that Payday might be operating a Ponzi scheme, deceiving unsuspecting Nigerians and Africans and causing them to lose their hard-earned money.
The report shed light on the operational tactics of Payday, likening them to infamous Ponzi schemes like ‘MMM’ and ‘Racksterli’ that have defrauded numerous Nigerians in the past. Following the publication of the article, Payday reached out to Forsige via email and contacted the founder via WhatsApp, pleading for the removal of the article. While the founder agreed to take down the article temporarily, it was made clear that an investigation into Payday’s activities would be initiated. If any illicit activities were discovered, the article would be updated, and further coverage of Payday’s questionable operations would be provided.
In the months that followed, there have been several reports indicating that Payday continues to withhold users’ funds. Users who have had their funds withheld have not seen any resolution, and it appears that more individuals are falling victim to this situation. Interestingly, amidst these controversies, it has come to light that the Payday CEO is exploring the possibility of selling the company, despite allegations of fund misappropriation and questionable tactics employed by the platform.
The situation surrounding Payday raises concerns not only about the fate of the company but also about the potential impact on the users who have entrusted their finances to the platform. However, the outcome of these ongoing discussions with potential buyers remains uncertain.