Nigeria’s Economic Crisis Forces Edtech Startup Edukoya to Shut Down

Nigeria’s struggling economy has claimed another casualty as education technology startup Edukoya shuts down after three years in operation. Despite raising Africa’s largest pre-seed funding of $3.5 million in 2021, the startup says poor infrastructure and harsh economic conditions have made it impossible to scale.

In a statement obtained by Your Tech Blogger on Wednesday, Edukoya announced that it would return capital to investors rather than continue operating in what it described as an unsustainable market environment.

“Despite our early success, we faced fundamental adoption challenges, including limited internet penetration, high device costs, and declining disposable incomes. These factors made it difficult for our target audience to afford digital education services,” the company stated.

Launched to revolutionize digital learning for primary and secondary students (K-12), Edukoya initially gained momentum, onboarding over 80,000 students, facilitating millions of practice questions, and conducting thousands of live tutoring sessions. However, the economic realities proved too much to overcome.  

The company explored partnerships, mergers, and alternative business models, but none provided a viable path forward. 

“Rather than exhaust resources in an unsupportive market, we have made the difficult decision to shut down and return capital to investors. This strategic shutdown, though counterintuitive in a startup culture that values persistence, ensures better outcomes for all stakeholders,” the statement added.

Edukoya’s collapse is yet another sign of the wider struggles in Africa’s edtech sector, where startups battle against poor infrastructure, low affordability, and economic instability. While digital learning remains a high-potential market, large-scale adoption remains a major challenge.

The company expressed gratitude to its team, parents, students, and investors, stating that while its journey has ended, the lessons learned could pave the way for future edtech innovations—when the market is ready.