Twiga Foods, a platform that connects Kenyan farmers to food vendors, has secured undisclosed funding as part of a business refinancing process just weeks after facing a KES 40 million (USD 261,878.75) debt collection lawsuit from Incentro Africa, a cloud services vendor.
Twiga secured the new funding from Creadev, Juven, TLcom Capital Partners, and DOB Equity, four investors that participated in its 2021 $50 million
“We have sent over 100 letters informing suppliers that we have now finalised our restructuring and refinancing and they will finally have their long outstanding dues paid,” said Peter Njonjo, Twiga’s CEO, in a now-deleted Medium article posted two weeks ago.
It’s a U-turn from Twiga’s original position disputing Incentro’s debt claim. “The statutory demand is made in bad faith and with ulterior motives,” Twiga said in response to Incentro’s original court filing. It also said that the lawsuit was “unreasonable and motivated by malice.” Despite this, Twiga later confirmed it was in talks with Incentro to settle the debt.
During the liquidation proceeding, Twiga argued that its reputation would be harmed, seemingly to discourage similar lawsuits from other suppliers. By late 2022, Twiga had over 140 suppliers.