The U.S. Securities and Exchange Commission (SEC) has temporarily suspended trading of Tingo Group’s shares, a Nasdaq-listed company providing services in agriculture and financial technology across Africa, the Middle East, and Southeast Asia.
The SEC cited concerns about the adequacy and accuracy of publicly available information related to Tingo Group. The suspension, scheduled to end on Nov. 28, includes Agri-Fintech Holdings, an entity associated with the Tingo brand, due to a lack of “adequate and accurate” information.
The SEC said the temporary suspension will end on Nov. 28, cautioning brokers and anyone interested in Tingo to “carefully consider” the action it has taken as well as “any information subsequently issued by the company.”
Tingo Group caught in fresh allegations
Tingo Group, founded by Nigerian businessman Odogwu ‘Dozy’ Mmobuosi, gained attention in February 2022 when reports suggested it was looking to raise $500 million with a valuation of $6.3 billion.
However, in June, short-seller Hindenburg Research labelled Tingo as an “obvious scam,” questioning the credibility of its numbers. Tingo refuted the allegations, but the SEC’s recent action raises further questions about the company.
Despite the SEC’s concerns, Tingo responded by publishing what it claims are “profitable” numbers from its third-quarter performance. The company reported $586.2 million and $2.4 billion in net revenues for the three and nine months ended Sep. 30, 2023, respectively. Tingo attributed the decline in third-quarter results to the devaluation of the Nigerian naira.
However, the SEC’s trading suspension and Hindenburg’s allegations have cast doubt on Tingo’s credibility. The company mentioned ongoing projects, such as purchasing 6 million smartphones for farmers, developing branded food products, and a potential launch in Pakistan. The SEC has urged brokers and interested parties to carefully consider its actions and any subsequent information issued by Tingo.
The situation highlights growing scepticism within the African tech community regarding Tingo’s rapid rise and raises concerns about the accuracy of its financial information. The SEC’s investigation adds another layer of uncertainty to Tingo’s standing in the market, prompting stakeholders to closely monitor developments in the coming weeks.
Read also: Nigeria’s DataPro revokes Tingo Mobile’s ‘A’ credit rating amid allegations of fraud
What you should know about Tingo Group
Months ago, a report by Hindenburg Research, a US-based investment research firm, accused “Dozy” Mmobuosi, CEO of Tingo Group of falsifying documents and the financial statements of the company on multiple occasions.
The Group faced serious allegations of engaging in what the investment research firm describes as “exceptionally obvious scams with completely fabricated financials.” The exposé comes after Tingo’s meteoric rise, with Bloomberg reporting in February 2022 that the company was seeking to raise $500 million and was already valued at an impressive $6.3 billion.
The accusations against Tingo Group was multifaceted and painted a picture of deceptive practices across various business facets. From falsified financial documents to dubious partnerships and unsubstantiated claims about product offerings, the company’s integrity was then placed under intense scrutiny.
Notably, Tingo’s alleged ventures, including Tingo Mobile, Tingo Pay, and NWASSA, all faced questions about the accuracy of reported user numbers and operational discrepancies. The expose also shed light on the CEO’s questionable credentials, false statements, and failed business endeavors, further eroding confidence in Tingo Group’s leadership.
Although the Group has now countered the suspension with claims of profitability, presenting figures for its third-quarter performance, given the seriousness of the accusations and the suspension of trading in Tingo Group shares, the company’s future hangs in the balance.
As Block & Leviton, a prominent law firm, launches an investigation into potential securities law violations, Tingo Group finds itself at a critical juncture, facing intense scrutiny and the potential unraveling of its once-enviable reputation.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
