Global Financial Company (IFC), a member of the World Financial institution Community and a lead investor in Africa’s Talking (AT) 2018 $8.4 million series A round, sued its portfolio firm in 2023 for rejecting an acquisition provide from Infobip, a individual familiar with the matter told TechCabal. The matter is easy ongoing at court docket, folk familiar with the matter acknowledged. TechCabal had no longer bought the court docket documents on the time of this account.
IFC, which holds a 20% stake in Africa’s Talking, truly handy that the firm catch the acquisition provide but by some means did now not persuade the relaxation of the board. As phase of the Series A deal, Wale Ayeni, who led IFC’s project capital arm in Africa on the time of the funding, joined Africa’s Talking board. Marieme Diop has since modified him.
“In the event that they managed the board, they’re going to furthermore safe permitted the sale. However on this case, Samuel Gikandi, Africa’s Talking CEO, controls the board. So, IFC has to web majority board approval,” an investor who requested no longer to be named acknowledged.
IFC did no longer acknowledge to a pair of requests for comments from TechCabal.
Two other cofounders at Africa’s Talking were open to the Infobip acquisition, sources familiar with the deal claimed. Those cofounders are also suing Gikandi.
“AT used to be viciously attacked by the IFC final yr, continuing a pattern of abuse that began with their funding in 2018,” Gikandi told TechCabal through electronic mail. He added that the “attack” felt esteem a “veil-up” and claimed he used to be ignorant of IFC’s motivation.
Gikandi did no longer acknowledge any questions about the final discover complaints.
Orange Digital Ventures, a $350 million fund, and Social Capital, a $600 million fund taking a look to promote its stake in startups, also participated in Africa’s Talking Series A round.
Africa’s Talking is now caught up in as a minimal two accurate circumstances. On Monday, TechCabal reported that Africa’s Talking and Gikandi were sued by Africa’s Talking other co-founders Eston Maina Kimani and Bilha Ndirangu, and three others who speak that Gikandi pushed out Ndirangu as director after she known as for an investigation into “region of job abuse.”
“The 1st Applicant (Ndirangu), who previously served as a CEO and till the irregular ouster held the region of an independent director, possesses a deep notion of the first Respondent and its operations,” a court docket doc read.
*This is a increasing account