Afrigather Tingo Group, a Nigerian Agri-Fintech, has seen its share value plummet by -55% on NASDAQ after Hindenburg Analysis introduced that it had taken a brief place on the corporate for being an “exceptionally apparent rip-off”.
Hindenburg Research, a U.S.-based funding analysis agency specializing in short-selling, has accused Tingo Group, a Nigerian firm, of being an “exceptionally apparent rip-off with utterly fabricated financials”. In an announcement on Tuesday, Hindenburg mentioned that Tingo inflated its financials, lied about its $1.6 billion meals processing plant, its enlargement drive to Ghana and that it photoshopped its emblem on one other POS operator’s machine.
The analysis group additionally accused Tingo’s founder and CEO, Dozy Mmuobuosi, of fabricating elements of his private {and professional} historical past. Mmuobuosi had beforehand been within the information for making an attempt to purchase a newly promoted Premier League team, Sheffield United, and for sponsoring the Nigerian football league’s pre-season cup.
Mmuobuosi’s declare of founding the primary cell fee app in Nigeria was disputed by the precise creator, Deji Oguntonade, who known as Mmuobuosi’s claims “completely false” and a “pure lie”. Mmuobosi’s declare that he acquired a PhD from a Malaysian college was additionally refuted by the college, which mentioned that nobody by his identify was discovered of their verification system.
In 2019, Mmuobuosi claimed that he had launched “Tingo Airways” and inspired folks on social media to fly with the airline. The airline is registered in England as Tingo Airways Restricted and declared a share capital of £1 billion in August 2019, with Mmobuosi as the only shareholder. The Athletic reported in February that there isn’t a proof of Tingo Airline ever flying an airplane, and that its registered handle was eliminated with a word saying that the handle was “invalid or ineffective and was cast”. The airline can be dealing with an lively proposal to be struck off the UK’s registrar of firms for failing to file fundamental paperwork.
In April, the co-chairman of Tingo wrote a public letter to Mmuobuosi and filed it with the SEC, saying that he couldn’t approve the corporate’s annual report. Within the letter, he mentioned that he felt it “essential to recuse myself by resigning” resulting from “many essential questions, feedback, and proposals” that went “unanswered and unheeded”.
Tingo has additionally beforehand claimed that its agricultural export enterprise, Tingo DMCC, was on monitor to ship over $1.34 billion in exports by the third quarter of 2023. A declare that exceeds the whole Nigerian agriculture export value for 2022. Hindenburg additionally mentioned Tingo DMCC was not listed within the Nigerian customs database.
Tingo additionally claims to have launched its NWASSA market, a market that enables farmers to promote merchandise wholesale or retail with out middlemen interference, in Ghana. Hindenburg discovered that the web site for NWASSA didn’t work and “led nowhere”.
Tingo additionally claims its fee group, TingoPay, has Level of Sale (PoS) and different service provider merchandise. Nonetheless, the analysis group discovered this to not be true. No hyperlinks to the TingoPay app are on the Google Play retailer or the Apple Retailer. Additionally, Tingo’s POS web site pictures have been lifted from an Indian funds firm, PocketPOS.
Tingo additionally claimed that its cell handset leasing, name, and information segments generated $128 million in income within the first quarter of 2023 and that these providers are supplied by way of an settlement with Airtel Nigeria. The kind of license they declare didn’t exist till June 2023. Hindenburg mentioned that checks with the Nigerian Communications Fee confirmed no file of Tingo being a cell licensee, regardless of firm claims of getting 12 million cell prospects.
In 2021, Tingo claimed to have launched a partnership with a outstanding Nigerian financial institution to develop its cell providers, which might start its fee group, TingoPay. Two days after the partnership announcement, the financial institution debunked the declare. TechCabal despatched a number of emails to Tingo asking for feedback, however the firm didn’t present one on the time of this report.
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