Dash, a Ghanaian fintech company that failed to realize its goal of making it easier for Africans to send money across borders by integrating mobile wallets, has shut down after a turbulent run.
Prince Boakye Boampong established Dash in 2019, and investors were enthusiastic about the issue the firm hoped to address. Dash’s solution would have made transmitting money throughout Africa simple and effective by ensuring interoperability between mobile money wallets and bank accounts.
In five years, the business raised $86.1 million and attracted high-profile investors. The second largest seed round for an African firm, it raised $32.8 million in 2021.
Dash began releasing startling growth statistics in 2021. According to one publication, Dash stated that it had recruited a million users from Ghana, Nigeria, and Kenya and that it had handled transactions totaling $1 billion.
In just five months, the figures showed a five-fold increase in the number of users.
At least two news outlets expressed doubts about Dash’s stats and user base in February, and Prince Boakye Boampong was relieved of his CEO duties later that same month.
Internal checks of Dash’s data revealed that Boampong had inflated and overstated the number of users. Kenneth Kinshua eventually took his place after being sacked.
According to recent information, the damage was already done when Kenneth Kinshua took over as CEO.
A gap of at least $25 million was allegedly unaccounted for during a second examination of the company’s financial records, according to the publication.
With no revenue and a claimed burn rate of $500,000 per month, Dash’s main issue seemed to be its expensive overhead because it had operations in five different nations.
Boampong reportedly made $50,000 each month and allegedly misappropriated at least $8 million, according to WeeTracker.
There are allegations that the funds were used to purchase luxurious vehicles and real estate. Boampong has not addressed any of the charges in public.
