About 15% of Wave's workforce was laid off last month Jessica Chervin, a former Andela executive who joined Wave as an expansion lead in March, wrote onLinkedIn that she was leaving the company.
Wave has had to make very hard decisions in order to ensure that it can continue to serve customers in existing markets now that the capital markets have changed. I and many others are leaving Wave early because of this shift in priorities.
A spokesman for Wave said that close to 15% of the company's staff were let go. Most of the employees who were laid off worked in Wave's new markets of Uganda, Ouagadougou, and Malian.
According to a statement Wave released to its employees on June 30, the company said it was scaling back its teams in these markets as part of efforts to make sure it doesn't have to rely on new funding at a time when investors around the world are cutting back
Wave said its decision to pull out of newer markets will allow it to double down on its core markets, where it is market leaders in mobile money with growing businesses.
WorldRemit acquired Sendwave for about $500 million in cash and stock. Over $290 million in equity and debt capital funding has been raised by the company since it launched two years ago. At its last fundraise in September of last year, the firm was valued at over $1 billion. It was led by a number of companies. Sam Altman is an investor in the startup.
Wave's platform is similar to PayPal. It charges a 1% fee whenever customers send money and uses cash on hand to service customers who can make free deposits and withdrawals.
The company is disrupting the mobile money industry with its app based solution and cheaper fees. Wave claims to serve over 10 million users a month across its operating markets.
Out of all the countries in the region, Wave is the first one. The company cut staff in five markets: Tunisia, Kenya, the U.S., Germany, and Nigeria.
Some of the people we are leaving are some of the most dedicated in our industry. The decision to let them go is one of the hardest decisions the business has ever made. We regret the impact on employees and their families, but we feel strongly that the best way to honor these colleagues is to make sure they are remembered. Wave is offering enhanced benefits and packages to all affected employees to show their appreciation for their hard work.
As the global venture capital market slows, Africa charts its own course
Layoffs have become the norm as rising interest rates and an extended bull run that swept across private and public markets have made life difficult for tech companies. Growth- and late-stage startups are the ones being strict with their money. Those who have had success raising capital have had to adjust to pre-pandemic valuations, while startups have had to cut costs and trim down workforces.
Microsoft and Meta employees have been fired by big tech companies. Small- to large-sized startup in various sectors have downsized. It seemed like it would take a long time for the effect to reach Africa, but news of layoffs from two companies made the rounds last month.
It isn't for Wave just as it wasn't dire for Vezeeta. The startup has enough money in the bank for the next few years, and last week it secured a 90 million syndicated loan from the International Finance Corporation. Wave said that the loan will allow it to increase its customer base and expand operations.
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