Nigerian mobility financing startup MAX has laid off 30% of its workforce, approximately 150 employees, as it transitions to exclusively financing electric vehicles (EVs) across Nigeria, Ghana, and Cameroon. The move is part of MAX's ambitious plan to finance 120,000 EVs, triple the number of vehicles it supported in 2024.

The layoffs have raised concerns among employees, some of whom claim the terminations were abrupt and lacked severance packages. MAX insists the restructuring was necessary, offering support measures like job placement assistance. Beyond workforce cuts, the company has introduced cost-saving measures, including reduced energy consumption and a push for cleaner energy sources at its offices and battery swap stations.

MAX is also scaling its EV charging infrastructure, securing a $10 million partnership with PASH Global in November 2024. Despite its aggressive pivot, MAX faces huge financial demands. Since 2019, it has raised $63 million in equity and debt financing, but with EVs costing up to $900 per unit, securing additional capital will be critical.

The mass job cuts signal that the mobility financing startup is on a path to becoming cost-efficient. Nigeria's EV industry has seen some remarkable advancements. Over the past few months, players like Siltech have increasingly bet on Nigeria, despite the infrastructural lack, being ready for EVs. MAX is part of that bubble; however, its EV bet is a question of whether the startup can balance its ambitious goals with the human cost of its transition.

In other news, the Nigerian government has taken over Keystone Bank after a court ruling, citing regulatory non-compliance and corporate governance failure. The move could suggest that the government is stepping in to stabilise operations, protect depositors, and ensure compliance with regulatory standards. While this intervention is intended to prevent a collapse and maintain confidence in the financial system, it also raises questions about the bank's future and its recapitalisation efforts.

Raenest, a Nigerian fintech platform, has raised $11 million in Series A funding, led by QED Investors, with participation from Norrsken22, Ventures Platform, P1 Ventures, and Seedstars. Other deals for the week include Taager's $6.75 million Pre-Series B funding round and Affinity Africa's $8 million seed funding.

Meanwhile, the Africa Tech Summit in Nairobi, Kenya, and The ATCG Abuja 2025 Convening are set to take place in February, providing unrivalled insight, networking, and business opportunities for African and international investors and tech leaders. The events will connect industry leaders, companies, and speakers via multiple tracks, workshops, and networking opportunities.

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