Investors of Nigerian HR-tech start-up Bento Africa were shocked by the sudden resignation of CEO Ebun Okubanjo, who gave up his stake in Bento Africa without notice. His sudden departure comes amid accusations that Bento failed remit millions in taxes and pension contributions to its clients, raising concern about financial mismanagement.
According to three investors who requested anonymity so that they could speak freely, Bento’s investor relations have been opaque for a long time. This person claimed that Bento rarely communicated to its investors. Unlike most venture-backed companies, which regularly provide structured reports and financial updates. TechCabal reported that Bento was not known for its transparency. “We didn’t get quarterly reports and when we asked about updates, the responses were at best vague.” We don’t know what will happen now that the CEO has left.
Okubanjo resigned via an email sent to the board of directors. At least two investors only learned of his departure after TechCabal contacted them for comment. It is unclear what will happen to the unresolved obligations and who will be held accountable after allegations that Bento did not remit statutory deductions like taxes and pensions for its clients. Okubanjo claims that the incidents only affected a few clients and blamed Nigeria’s manual system of taxation for the problems.
Bento has raised at least $2.3 Million in disclosed funding from Africa focused venture capital firms, including Zrosk Capital, Berrywood Capital and Kinfolk Venture Capital. Crunchbasereports that the startup has positioned itself as a game-changer in payroll and HR management. The startup was positioned as a game changer in payroll and HR Management, expanding into Kenya Ghana and Rwanda, with ambitions to rule Africa’s employment benefit space.
Bento’s CEO is no longer with the company, and it now faces a difficult task: rebuilding trust among investors, clients, regulators, and others. The company’s lackluster governance has become more evident, and the absence a clear successor for Okubanjo raises concerns about Bento’s ability to weather the storm.
