Startup Setback: SweepSouth Halts Nigeria Ops After Funding Boost

Published 2 hours ago2 minute read
Startup Setback: SweepSouth Halts Nigeria Ops After Funding Boost

SweepSouth, the online home cleaning service originally from South Africa, has announced the cessation of its operations in Nigeria, effective from Friday, November 25, 2022. The company cited severe economic pressures and an unfavorable global macroeconomic environment, which have significantly impacted the home service industry, as the primary reasons for this “very difficult” decision. This move comes less than a year after SweepSouth launched its services in the Nigerian market in 2022.

The company, co-founded in Cape Town in 2014 by Aisha Pandor and Alen Ribic, had established a notable presence across Africa’s major tech markets. Following its launch in South Africa in 2021, SweepSouth expanded into Kenya and Egypt before entering Nigeria. Just three months prior to this announcement, SweepSouth successfully raised $11 million in its largest pre-seed funding round, which was led by Alitheia IDF (AIF), Africa’s first and largest gender-lens private equity fund, with participation from investors like Naspers Foundry. Earlier in the year, the company had also acquired the Egyptian home service platform, FilKhedma, demonstrating its rapid expansion efforts.

In a statement shared on its Twitter page, SweepSouth acknowledged the negative impact this decision would have on its Nigerian community and its network of cleaners, known as SweepStars. The company requested support and understanding during this transition. All bookings scheduled between the announcement date and November 25th were to remain valid, while any bookings planned for after November 25th would be canceled. Customers who had paid in advance or had Sweepcred loaded in their accounts were assured full refunds.

Awazi Angbagala, SweepSouth’s Nigeria country manager, had previously highlighted the company’s ambitious targets, stating that SweepSouth processed approximately 40,000 bookings per month across its three operational markets at the time. Prior to its full launch in Nigeria, the service had undergone a two-month test run, during which it recorded 300 bookings and received positive feedback, affirming the company’s belief in its proposition for Nigerian customers.

Despite the withdrawal from Nigeria, SweepSouth confirmed its commitment to continuing operations and empowering its community in South Africa and Egypt. The company expressed its intent to closely monitor the Nigerian market for a potential re-entry at a later, more favorable date, underscoring its long-term vision for the continent.

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