*Editor’s note on correction: The headline of this story has been changed to reflect that the IFC has denied suing Africa’s Talking.
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 has denied suing its portfolio company in 2023 for rejecting an acquisition offer from Infobip. An earlier report from this publication cited a court case referenced by people familiar with the matter.
Certain aspects of their claims have now been determined to have been wrong.
IFC holds a 20% stake in Africa’s Talking and 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.
“IFC does not discuss the business decisions of its clients,” the corporation told TechCabal via email.
“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.
