International Financial Corporation (IFC), a member of the World Bank Group and a lead investor in Africa’s Talking (AT) 2018 $8.4 million series A round, sued its portfolio company in 2023 for rejecting an acquisition offer from Infobip, a person familiar with the matter told TechCabal. The matter is still ongoing at court, people familiar with the matter said. TechCabal had not received the court documents at the time of this report.
IFC, which holds a 20% stake in Africa’s Talking, recommended that the company accept the acquisition offer but ultimately failed to convince the rest of the board. As part of the Series A deal, Wale Ayeni, who led IFC’s venture capital arm in Africa at the time of the investment, joined Africa’s Talking board. Marieme Diop has since replaced him.
“If they controlled the board, they could have approved the sale. But in this case, Samuel Gikandi, Africa’s Talking CEO, controls the board. So, IFC has to get majority board approval,” an investor who asked not to be named said.
IFC did not respond to multiple 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 was viciously attacked by the IFC last year, continuing a pattern of abuse that started with their investment in 2018,” Gikandi told TechCabal via email. He added that the “attack” felt like a “cover-up” and claimed he was unaware of IFC’s motivation.
Gikandi did not answer any questions on the legal proceedings.
Orange Digital Ventures, a $350 million fund, and Social Capital, a $600 million fund looking to sell its stake in startups, also participated in Africa’s Talking Series A round.
Africa’s Talking is now caught up in at least two legal cases. 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 allege that Gikandi pushed out Ndirangu as director after she called for an investigation into “workplace abuse.”
“The 1st Applicant (Ndirangu), who previously served as a CEO and until the irregular ouster held the position of an independent director, possesses a deep understanding of the 1st Respondent and its operations,” a court document read.
*This is a developing story
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Copyright for syndicated content belongs to the linked Source : TechCabal – https://techcabal.com/2024/03/09/ifc-sues-africas-talking-for-rejecting-acquisition-bid/
