Editor’s correction note: The headline of this article has been revised to mirror the IFC’s denial of suing Africa’s Talking.
The International Financial Corporation (IFC), part of the World Bank Group and a primary investor in Africa’s Talking (AT)’s 2018 series A round of $8.4 million, has refuted accusations that it sued its portfolio company in 2023 for turning down an acquisition bid from Infobip. This refutation contradicts an earlier report from us, which cited an ongoing court case based on sources acquainted with the case.
The IFC, which owns a 20% stake in Africa’s Talking, allegedly advocated for the company to accept the acquisition offer, but was unable to persuade the rest of the board. As part of the Series A agreement, Wale Ayeni, who headed IFC’s venture capital operations in Africa at the time of the investment, joined Africa’s Talking board, and has since been replaced by Marieme Diop.
Samuel Gikandi, CEO of Africa’s Talking, allegedly maintains control of the board, meaning any decisions require the approval of the majority of the board.
Orange Digital Ventures, a $350 million fund, and Social Capital, a $600 million fund interested in selling its stake in startups, also contributed to Africa’s Talking Series A funding round.
Currently, Africa’s Talking is embroiled in at least two legal disputes. It was reported by TechCabal on Monday that Africa’s Talking and its CEO, Samuel Gikandi, were sued by co-founders Eston Maina Kimani, Bilha Ndirangu, and three others. They accuse Gikandi of removing Ndirangu from her director position after she called for an investigation into allegations of “workplace abuse.”
As per a court document, Ndirangu, who previously served as a CEO and held the position of an independent director before her unexpected removal, has an in-depth understanding of the company and its operations.
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We want to express our sincere apologies for any misinterpretations or misunderstandings that may have been caused to Africa’s Talking, the International Financial Corporation (IFC), and our esteemed readers as a result of our previous statement.
