Cowrywise, a Y Combinator-backed fintech startup based in Nigeria, has reorganized its staff and terminated five employees from its customer success, engineering, and marketing departments.
A source knowledgeable of Cowrywise’s operations claims that the company justified these staff reductions by claiming that the eliminated positions were no longer in line with its changing goals. The move highlights the dynamic nature of the fintech sector and the company’s vision to stay ahead of the curve, with the spokesperson characterizing it as part of internal restructuring and adaptation to evolving business needs.
Cowrywise, which employs fifty people, formally announced that five positions had been terminated after an annual performance review. The company distanced itself from traditional layoff scenarios by stating that these adjustments do not qualify as layoffs and are usually linked to economic or business performance concerns.
A nameless insider with knowledge of Cowrywise’s history alluded to a change, describing the business as something “completely different” in the years to come and emphasising a move away from being a traditional fintech player and more of a finance company. The remarks made by the unnamed source highlight Cowrywise’s present decisions’ strategic and forward-thinking elements.
The affected workers were given an unusual package when they left, receiving three months’ salary instead of the one month that was specified in their contracts. This unusual action draws criticism and indicates a change from the customs surrounding terminations based on performance.
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The growth of Cowrywise
Established in 2017 by Edward Popoola and Razaq Ahmed, Cowrywise—a startup included in Y Combinator’s Summer 2018 batch—has experienced substantial expansion since its founding. The startup began with a savings feature and has since grown, offering its user base in Nigeria a variety of investment options. Achieving over 220,000 users and closing a sizeable $3 million pre-Series A funding round led by Quona Capital in January 2021 are noteworthy milestones.
In 2021, Cowrywise secured a licence to function as a fund manager from the Securities and Exchange Commission (SEC), Nigeria’s capital markets regulator, thereby reinforcing its standing in the financial sector. According to the company’s website, investors can select from 19 SEC-licensed mutual funds, and its platform lists at least 20% of all mutual funds in the nation.
Investing made easy with Cowrywise
Cowrywise is a goal-oriented wealth management tool that helps users make smart financial decisions about investments and savings. The platform appeals to a wide range of users because it provides a variety of investment plans, including options for Halal investments.
Fintech offers a variety of investment products, such as government bonds and mutual funds, making it simple for customers to put together a diversified investment portfolio.
Fintech places a strong emphasis on financial literacy and provides resources to assist consumers in determining their level of risk tolerance and making wise investment choices. The platform is desirable for individuals wishing to enter the investing world due to its user-friendly interface and transparent fees.
The business provides a smooth investing and saving experience. The platform’s goal-oriented methodology aids users in maintaining concentration on their financial goals.
Cowrywise provides a wider selection of investment options, such as bonds, mutual funds, and other asset classes. This diversity allows users to construct a well-rounded investment portfolio.