GoLemon, the Nigerian grocery delivery startup founded by former Paystack employees, has shut down just two years after launching, becoming the latest casualty in Nigeria's increasingly challenging food delivery market.

The company announced that it was winding down operations after failing to secure additional funding, despite efforts to keep the business running.

"Despite our efforts to raise additional funding, we couldn't find a sustainable path forward within the time available to us," the company said in a statement.

GoLemon launched with the ambition of making grocery shopping more convenient through on-demand delivery, entering the market after major players such as Jumia Food and Bolt Food exited Nigeria's food delivery space.

At the time, the founders believed there was still room to build a sustainable grocery delivery business despite growing uncertainty in the sector.

The shutdown comes weeks after Nigerian food-tech platform FoodCourt also suspended operations, citing fundraising challenges.

While demand for food and grocery delivery continues to rise, the sector remains difficult to scale. Startups face rising logistics costs, inflation, thin profit margins and price-sensitive consumers, making profitability increasingly difficult without sustained investor backing.

GoLemon's closure adds to a growing list of Nigerian delivery startups struggling to survive, highlighting the funding pressures and operational challenges facing one of the country's most competitive startup sectors.