Three weeks after Kenya startup, Twiga, closed a funding round to address debts and pay suppliers, there has been news about the nature of the funding, with reports from TechCabal indicating that the agritech startup secured a $35 million convertible bond.
The bond is a form of debt that pays interest but can also be converted into equity. The funds were raised from Creadev and Juven, two private equity investors who had previously invested in Twiga.
Twiga, which connects farmers with food vendors, has previously faced some financial challenges and was even sued by cloud service vendor Incentro, which sought to declare Twiga bankrupt and recover debts. The ongoing dispute between the two companies remains a private matter.
However, new developments are emerging within Twiga as CEO Peter Njonjo recently announced his decision to take a six-month leave. This has raised concerns and speculation about investors potentially trying to oust him. While some believe that Njonjo may be in good standing with the board, others interpret this move as a potential exit strategy for the CEO.
This development adds to Twiga’s recent challenges, which included laying off 30% of its workforce and altering its business model. The company shifted to relying on independent sales contractors instead of its in-house sales department, as it aiming to tackle its financial difficulties and adapt to market dynamics.
As Twiga navigates these changes and the potential implications of its CEO’s leave, the startup continues to be a focal point in the evolving landscape of Kenyan tech entrepreneurship. The injection of $35 million through the convertible bond provides the company with financial relief, but the internal dynamics and leadership changes will be closely monitored in the coming months.