Woven Finance fumble: startup denies shutdown after erroneous email

Woven Finance, the Coronation Group-backed fintech startup, has denied shutting down, claiming that an email sent to customers on Wednesday morning informing them of a shutdown was sent in error.

“The email was unauthorised and was immediately recalled,” a highly-placed person at the company told TechCabal.

“After a thorough analysis of the current market dynamics and their impact on our business model, Woven Finance has resolved to cease its payment services operations in the first quarter of 2024,” part of the company’s Wednesday email said.

The company also denied a crucial detail in the email where it told customers that it would transfer its services to Hydrogen, a fintech owned by the Access Group. “There are no plans to transfer any service,” the same source said, perhaps referring to the Payment Solution Service Providers (PSSP) licence it received in 2022.

The fintech told TechCabal that it would send communication clarifying the error and that it continues to operate until shareholders and the company’s board decide otherwise.

Woven Finance is backed by Trium, the venture arm of the Coronation Group, which includes companies like Coronation Merchant Bank and Coronation Insurance (formerly WAPIC).

*This is a developing story