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Techstars-backed BlackCopper Plunges into ₦1 Billion Debt Amid Lending Disruption Attempt

In a bid to revolutionize lending, BlackCopper, supported by Techstars, finds itself in hot water with a staggering debt of ₦1 billion. Despite Nigeria's banking giants steering clear of retail lending, digital startups saw promise in this untapped market. However, BlackCopper's journey took a perilous turn as it struggled to recover over 60,000 loans, attributing the setback to falsified customer information and high default rates.

Co-founded by Olumuyiwa Faulkner and Azeez Oluwafemi, BlackCopper initially garnered attention for offering collateral-free loans to small and medium businesses. But as defaults mounted and losses loomed, the startup faced an uphill battle in loan recovery, leaving 75 investors in the lurch. With only a fraction of the debt repaid and layoffs affecting 30 out of 40 employees, the company's future hangs in the balance.

Despite Faulkner's efforts, including personal sacrifices and a pivot to generate new income streams, investors remain dissatisfied. Some accuse him of withholding the true state of affairs, while others question the efficacy of loan disbursement. Faulkner's relocation to Canada further fueled suspicions of evasion, though he attributes it to his wife's education.

While Faulkner remains optimistic about leveraging BlackCopper's technology for other ventures, skepticism looms over his understanding of the situation's gravity. As investors ponder their losses, Faulkner's once-promising narrative of empowering Nigerian businesses through digital lending now faces harsh scrutiny, leaving doubts about the feasibility of disrupting a market long avoided by traditional institutions.

Olasunkanmi Oduntan, the publisher of ‘The New Dawn Online News – TNDOnline News’, writes from Lagos, Nigeria.

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