Ghanaian fintech company Dash, which aimed to connect mobile money wallets and bank accounts across Africa, has announced its closure. Founded in 2019 by Prince Boakye Boampong, Dash attracted investor interest with its mission.
Dash experienced significant growth in 2021, processing transactions worth $1 billion and gaining one million users from Ghana, Nigeria, and Kenya. This resulted in a five-fold increase in its user base within a span of five months.
However, suspicions regarding Dash’s user numbers and metrics arose in February, as reported by at least two publications. Subsequently, Prince Boakye Boampong was suspended as CEO. Internal audits revealed that Boampong had misrepresented and exaggerated user numbers, leading to his eventual termination. Kenneth Kinshua was appointed as his replacement.
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However, in February, there were suspicions about the user numbers and metrics of Dash, as reported by at least two publications. As a result, CEO Prince Boakye Boampong was suspended. Internal audits showed that Boampong had misrepresented and exaggerated the user numbers, which ultimately led to his termination. Kenneth Kinshua was then appointed as his replacement.
According to a publication, the damage had already been done by the time Kenneth Kinshua assumed the role of CEO. It was claimed that upon conducting another audit of the company’s accounts, a shortfall of at least $25 million was discovered, unaccounted for. With a reported monthly burn rate of $500,000 and no revenue, Dash’s primary challenge seemed to be its high overhead costs due to operations across five countries.
Boampong was earning a monthly salary of $50,000 and allegedly diverted at least $8 million. There are allegations that the funds were used to purchase property and luxury vehicles. Boampong has not publicly addressed any of these accusations.
Over the course of five years, the startup managed to raise a substantial amount of funding, totaling $86.1 million. This attracted prominent investors, with a seed round in 2021 generating $32.8 million, making it the second-largest seed round ever for an African startup. Additional funding was secured through convertible notes and debt financing from October 2021 to 2022.
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