Evaluating only MaTontine’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. Documented cause: Unit economics.
Key Events Timeline
FOUNDING
MaTontine founded in Dakar to digitize rotating savings groups.
Failed two Series A attempts; default rates above 35% scared off investors.
SHUTDOWN
Operations ceased, leaving 12,000 users without access to their savings pools.
Full Analysis
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Documented cause
MaTontine digitized traditional tontine savings circles in Senegal but failed to achieve sustainable unit economics. By 2021, default rates on micro-loans exceeded 35%, eroding capital reserves. The founding team led by Marième Diop could not raise a Series A after two attempts in 2021. Mobile money integration with Orange Money proved costly and slow. Operations ceased in early 2022 with roughly 12,000 active users left stranded.
Lesson
“Digitizing informal finance doesn't eliminate default risk — underwriting models must be rebuilt from scratch for each market.”