Ayodeji Ayenuwa
Peppa, the online escrow startup, has initiated legal proceedings against GetEquity co-founders, Jude Dike and Temitope Ekundayo, following a police complaint over $43,000 raised through their platform.
Ekundayo’s two-day detention, labeled an “intimidation tactic” by GetEquity, unfolded as the startup insists they’ve paid $29,000 and cites exchange rate volatility for payment delays.
GetEquity maintains the position that it has resolved the outstanding amount owed to Peppa, even though acknowledging the financial challenges related to Naira’s exchange rate fluctuations.
Jude Dike, CEO of GetEquity, provided insights into the situation: “As a business, we’ve had to deal with high volatility in the Nigerian exchange rates,” attributing their struggles to fluctuations in the Naira and payment settlements affected by changes in the US Dollar’s value.
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Dike admitted to the extreme volatility leading them into a financial challenge, stating, “You had situations where if the investor makes a payment today, it takes two days for the transaction to settle, and the price of the US Dollar may have changed by as much as N200 in those two days.”
Despite the difficulties, he claims GetEquity rectified the situation and entered into an agreement with Peppa to stagger payments.
Peppa’s engagement with GetEquity started with the intent to collect funds from angel investors, as a source from Peppa explained, “As our company had completed a Know Your Customer (KYC) process, our agreement stated that we could collect the money that had been raised whenever we were ready, and it would be wired to us.”
The collaboration, however, took a turn when GetEquity proposed a four-week payment plan but failed to adhere to it, prompting Peppa to file a police complaint after months of unsuccessful dialogue.
This controversy, unfolding in the context of GetEquity’s self-description as a private marketplace for digital securities trading, raises concerns about its potential ramifications on funding for African startups.
Techrectory with Agency Report.
