By Susan Olalere 
Nigerian edtech startup Edukoya has officially shut down operations after three years, citing market readiness challenges, connectivity limitations, and macroeconomic pressures as the key reasons behind its closure. In a statement, the company also announced plans to return funds to its investors, signaling a responsible but difficult decision in a challenging business landscape.
Despite achieving significant milestones—including over 80,000 students, 15 million answered questions, and thousands of live tutoring sessions—the startup found it increasingly difficult to scale its synchronous learning model in a market struggling with high data costs, low device penetration, and limited disposable income among students and parents.
Rather than continue burning through resources in an unsustainable environment, Edukoya chose to close its doors strategically, marking the end of what was once one of Africa’s most promising edtech ventures.
From a Record-Breaking Start to a Difficult Pivot
Founded in 2021 by Honey Ogundeyi, Edukoya entered the African tech ecosystem with unprecedented momentum. The startup raised $3.5 million in pre-seed funding, the largest ever for an African edtech at the time. The round was led by Target Global, with participation from notable angel investors, including Paystack CEO Shola Akinlade, Kuda founders Babs Ogundeyi and Musty Mustapha, Stash founders Brandon Krieg and Ed Robinson, and Aux Money CEO Raffael Johnen.
Following its launch, Edukoya quickly gained traction. Within its first week, it became the second most downloaded education app in Nigeria, reflecting the strong demand for digital learning solutions. The startup’s mission was clear—to build the world’s largest online learning platform for African students, providing real-time tutoring, interactive digital content, and AI-powered personalized learning.
With offices in both Nigeria and the UK, Edukoya sought to bridge the gap between African students and on-demand educators, offering an alternative to traditional education models. However, scalability challenges soon became evident.
The Harsh Realities of Scaling in African Edtech
Edukoya’s business model relied on consistent internet connectivity and access to digital devices, two factors that remain major obstacles in Africa’s education sector. While there was evident demand, a large portion of the startup’s target audience struggled with affordability, making it difficult for Edukoya to convert widespread interest into sustainable revenue growth.
Additionally, broader economic conditions, including inflation and reduced household spending on non-essential services, compounded the difficulties. Edukoya eventually reached a critical decision point: continue fighting uphill battles or take a strategic exit.
In its final communication to stakeholders, the company stated that while it believed in its mission, the market was not yet ready for large-scale adoption of its model. Instead of depleting its resources in pursuit of scale, it opted to close down and return capital to investors—a rare and commendable move in the startup world.
An Uncommon Exit, A Lasting Impact
Although the exact amount to be refunded remains undisclosed, Edukoya’s decision to return investor funds has drawn praise from the venture capital community. One investor described it as a rare show of maturity in the African startup ecosystem, recognizing when market forces make long-term success unviable and acting responsibly instead of burning out.
While Edukoya’s closure is a significant moment in African edtech, the sector itself remains full of potential. Experts predict that with improved digital infrastructure and wider internet access, the African edtech market could grow to $57 billion by 2030, contributing to the continent’s estimated $740 billion education sector.
Edukoya’s journey may have ended, but the lessons from its rise and fall will shape the next wave of African edtech startups.
Leave feedback about this