Nearly a year after facing some financial challenges, which led to a mass layoffs of hundreds of its employees, Dealdey has closed its operations in Nigeria.
Dealdey, Nigeria’s only daily deals website, was established by Mr Sim Shagaya in 2011, but left a year later to start Konga, which has now been sold to Zenox.
In 2016, Ringier, which operates PulseNG, acquired Dealdey with the hope of revitalising the firm for better returns.
However, that dream seems to have crumbled now because the company is shutting down its services in Nigeria.
While the company did not provide information nor issue a formal statement as to why it closed down, there were obvious signs that its business model could no longer push withstand the market.
At the moment, the e-commerce space is mainly dominated by Jumia and Konga, with other struggling to survive the harsh environment in the country.
In 2016, Nigeria, the largest economy in Africa, slipped into recession, but came out a year later. The economy is still recovering from the 2016 crisis it plunged into.
Several companies have found it difficult to stay in business since 2016.