For the second time in five months, Prospa, a Y Combinator-backed business banking startup, is facing backlash from customers over delayed withdrawals. Since May 2024, several users have reported being unable to access their funds, with some withdrawals taking up to three weeks to process.
This isn’t the first instance of such issues. In February 2024, Prospa cited service downtimes for similar delays, leaving many customers waiting weeks to access their money. Prospa has yet to comment on the current situation, leaving business owners who rely on its services for deposits, invoicing, bookkeeping, and loans increasingly frustrated.
One user reported attempting to withdraw ₦800,000 and being met with unresponsive customer care lines and claims of technical issues. However, a contact at NIBSS, Nigeria’s payment aggregator, disputed these claims.
In March, customers formed virtual support groups to share updates and, in some cases, visited Prospa’s Yaba office to demand resolutions. The delays were eventually resolved, but the recurrence of similar issues in May has reignited frustrations.
Prospa employees have pointed to technical problems linked to its partnerships with banks, including Wema Bank and Good News Microfinance Bank, as potential causes. However, a former employee rejected comparisons to Brass, another business banking startup that struggled financially before being acquired. They maintained that Prospa’s issues stem from technical challenges, not capital shortages.
While Prospa continues to address complaints, the repeated disruptions are raising concerns about its reliability, particularly for the business owners who depend on seamless banking services.
