Due to this development, the startup issued a notice to its users on Monday, March 14 urging them to cash out before March 31.
“M4JAM was unable to achieve profitability within the investment time frame. As a result the board has decided to cease trading and sell the assets to interested parties over the course of the next month,” the company’s CEO Andre Hugo said in a statement.
He added, “We are in the process of meeting with a number of interested parties currently. If we are successful the business will be restructured. If not the business will be closed. Therefore we are urging jobbers to cash out their wallet balances.”
Job listings on M4JAM’s WeChat app have been taken down with organizations that have posted jobs to be refunded for unfulfilled jobs at the date of closure.
M4JAM was launched on Wechat, a leading social communication platform, in 2014. The platform connects brands who want to get jobs done to jobbers who are able to complete the jobs using their mobile devices in South Africa.
These brands pay a license fee for successfully completed jobs – M4JAM makes money this way.
The startup received funding from WeChat Africa, a Naspers and Tencent joint-venture and surpassed 70,000 users last year.
Despite these successes, M4JAM ran into problems which has prompted the cessation of trading.