Crypto startup Pillow which enabled users in Nigeria and Ghana to save and invest crypto assets ceases operations, cites regulatory climate as the reason.
The Singapore-based crypto startup Pillow recently announced its decision to discontinue its services, a year after expanding its services to Nigeria and Ghana. The startup offered features such as saving, spending, and investing in cryptocurrency, attributed its closure to the “current regulatory climate and its impact on associated financial infrastructure.”
Pillow disclosed this via in-app message to its user base, reportedly over 75,000 individuals across 60 different countries, asking them to withdraw their funds promptly. To facilitate the process, the company has set a deadline of July 31st, 2023, for users to withdraw their holdings. While the app will be removed from the Play Store by that date, the platform plans to suspend bank withdrawals on July 7th, with crypto withdrawals to follow on July 31st.
The company’s founders, Arindam Roy, Rajath KM, and Kartik Mishra, have not publicly announced the news, but the closure marks the end of Pillow’s mission to provide a means for individuals in emerging markets to combat inflation. The startup had raised approximately $21 million from 15 investors to support this goal.
Pillow’s decision is arguably a surprising turn of even as a few months ago, the startup was advertising job vacancies. However, this highlights the pressure faced by crypto startups in navigating regulatory environments, across the world.