Nigerian credit rating agency, DataPro Limited, has suspended Tingo Mobile’s credit rating. The decision came as a result of the company’s alleged failure to provide the necessary additional information required to sustain its assigned rating. DataPro had initially assigned it a long-term rating of ‘A’ with a positive outlook for 2023/2024, despite the challenging business environment in Nigeria.
This latest development follows recent damaging allegations made by Hindenburg Research, accusing the fintech company of fabricating financials and raising questions about the credibility of its founder, Dozy Mmobuosi.
DataPro said in a statement that the suspension of Tingo Mobile’s credit rating aligns with international best practices due to the company’s failure to provide clarity regarding its recent acquisitions and financial structure. Despite engaging with Tingo Mobile in an attempt to obtain the required information, DataPro noted that the company did not take advantage of the given timeline.
“In the past one week, DataPro has engaged with Tingo Mobile to get clarity about its recent acquisitions and financial structure. Unfortunately, the Company has not taken advantage of the timeline for it to provide needed information that will enable us to sustain the Rating assigned. This statement is given without prejudice or malice, it is a standard rating procedure globally.”
DataPro statement
This suspension of Tingo Mobile’s credit rating casts doubts on the company’s financial credibility and raises concerns about its reputation and investor confidence.
Hindenburg’s expose on Tingo Mobile
DataPro had initially assigned Tingo Mobile a long-term rating of ‘A’ with a positive outlook for 2023/2024. However, shortly after the rating was assigned, Hindenburg Research released a report claiming that the company had “fabricated” its financial statements. The allegations caused a decline in the company’s stocks, despite its denial and refutation of the report.
Technext reported the allegations made by Hindenburg Research, noting that the Group, which claims to have diversified business interests in mobile phones, food processing, and an online food marketplace for farmers primarily located in Nigeria, had lied about its $1.6 billion food processing plant and misrepresented some of its partnerships and products.
“We strongly suspect Tingo’s cash balance, which it conveniently claims is held in Nigeria, is fake. The company collected only ~12% of the interest income one would expect from its claimed cash balances. Overall, we think it is a worthless and brazen fraud that should serve as a humiliating embarrassment for all involved. We do not expect the company will be long for this world
Hindenburg Research
Read more: Here is all you need to know about Tingo Group and Dozy Mmobuosi’s alleged web of scams
The report further revealed that the 12 million mobile customers which Tingo Mobile claimed to have could not be verified by the Nigerian Communications Commission (NCC). Furthermore, the company’s website and presentation materials were found to have used stock photos of farmers with mobile phones.
Tingo Pay, its fintech described as a “seamless payment system” is also shrouded in discrepancy. One such discrepancy includes not having a partnership with the bank that it said it had when it launched in 2021. The unnamed bank said it had “NOT concluded any agreement with Tingo International in respect of any payment system whatsoever.”
Read more: Tingo, a Nigerian digital company seeks $500m investment for acquisition and expansion
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