Bizao, a fintech startup from Ivory Coast that was once hailed as a game-changer in the payments industry in Francophone Africa, has been ordered into compulsory liquidation by a French court.
In a dramatic turn of events, the startup, which had attracted international investors and expanded significantly across the region, announced its decision on Thursday.
Court ruling ends Bizao’s operations
The Paris Commercial Court’s judgement was rendered after Bizao was determined to be in a state of “cessation of payments,” which entailed its inability to fulfil its financial obligations.
In France, judicial winding-up is initiated when a company’s recovery is considered impossible, resulting in the sale of its assets to satisfy creditors.
The court announced, “The procedure terminates the company’s activity. Its assets are then sold to allow payment to the various creditors.”
The ruling was published in the Official Bulletin of Civil and Commercial Advertisements, ensuring creditors and stakeholders are formally notified.
For Bizao, this means an immediate halt to all business activities and the start of asset liquidation.
According to French administrative guidelines, “The judgment closing the liquidation shall be published by the Registrar of the Court of First Instance… The business ends and is thus released from debt.”
Stakeholders react to sudden liquidation
The news sent shockwaves through the West African fintech sector. A Bizao investor, speaking anonymously, said, “We believed Bizao had the potential to transform digital payments in the region. This outcome is a blow to everyone involved.”
Other fintech founders expressed concern about the impact on investor confidence in African startups operating under European jurisdictions.
French legal experts note that compulsory liquidation is a last resort.
“Judicial winding-up concerns a business in a state of cessation of payments and whose recovery is clearly impossible,” explained a spokesperson for the Directorate for Legal and Administrative Information.
The process is designed to protect creditors and ensure transparency, but it leaves little room for companies to recover once the order is issued.
What’s next for Bizao’s clients and employees?
With Bizao’s operations now halted, clients and employees face uncertainty. According to French regulations, the closing judgment “puts an end to the mission of all the players: liquidator, judge commissioner. It is advertised.
The judgment closing the liquidation for lack of assets causes the business to dissolve.” Employees will be notified through official channels, and creditors will be invited to file claims as the liquidation proceeds.
One former employee shared, “We worked hard to build something meaningful. It’s difficult to see it end this way, but we hope our efforts will inspire others to keep innovating.”