A potential loss of 17,500 jobs across Africa looms as 54 Collective announces the shutdown of its venture studio operations after their partnership with the Mastercard Foundation concludes on April 30, 2025. The two organizations have decided to move forward with different strategies, resulting in the partnership ending.
On February 20, 54 Collective (formerly Founders Factory Africa) announced to its staff that the company would be implementing layoffs. This decision was revealed during an internal staff meeting.
The closure of its African operations follows the withdrawal of the Mastercard Foundation’s $100 million investment from the venture capital firm.
Mastercard Foundation’s move exacerbates the funding difficulties currently plaguing the continent’s tech startup ecosystem, which is already experiencing a downturn in Western investment.
Read: Founders Navigate the Funding Winter: Lessons from The African Pre-seed Podcast Live Event
In 2024, 54 Collective was the most active investor in Africa. As a result, the shutdown in April will affect more than just its staff.
Since many startups built or supported by this fund are still in early stages and lack financial self-sufficiency, the closure’s repercussions will be widely felt across the African tech landscape. The VC has a rich portfolio of Kenyan companies.
54 Collective Kenyan Portfolio
From Wingi, offering bespoke brand packaging, to Zanifu, providing crucial buy-now-pay-later services for SMEs, the breadth of affected businesses paints a picture of the venture studio’s extensive reach.
Digital healthcare platform Zuri Health, and Wazi, focused on digital mental health, have also been benefiting from the program, as have Wareflow, an invoicing platform, and Vuna Pay, which supported agricultural finances.
The fund also supported Agritech ventures like Shamba Pride, an agricultural e-commerce hub, and Synnefa, which focuses on smart farming solutions.
Powered By People, a B2B ethical sourcing marketplace, and Quikk Dev, a digital finance innovator, are the other Kenyan startups in the VC’s portfolio.
54 Collective has a team of more than 60 members on the continent. It has regional hubs located in Johannesburg, Nairobi, and Lagos that are all set to close.
