FUNDER vs FOUNDER

Nigeria’s Anti-Fraud Body Detains Controversial Tech Founder

By  |  March 29, 2023

Nigeria’s antigraft body, the Economics and Financial Crimes Commission (EFCC), has taken Dr Olumide “D.O” Olusanya—the founder of Kloud Commerce, which shuttered under acrimonious circumstances—into custody, sources say.

WT learned from individuals close to the matter, who asked not to be identified, that officers of the EFCC came for D.O Monday in the middle of a meeting at the Lekki offices of Gloopro, one of the business ventures led by the embattled entrepreneur who had previously made strides in retail e-commerce via the now-defunct Gloo.ng.

D.O remains detained at the time of publishing this report, two sources confirmed, including a former executive at the now-shuttered startup, Kloud Commerce, whose investors have taken the matter of the debacle to the authorities alleging malfeasance, among other things.

“He consistently provided updates with false information to evidence a growth in the business and further deceived us into believing that indeed, the process was progressing,” reads part of an earlier drafted petition by investors seen by WT. Efforts to get further clarification as to whether the EFCC moved on that particular petition and the investors that ultimately signed off have proved abortive up to this point, as have efforts to ascertain the status of his detention and what is to follow.

Kloud Commerce (formerly PayPecker) landed USD 765 K in pre-seed in 2021 to build a multi-channel commerce solution for African businesses, starting in Nigeria. However, the startup closed its doors a year later, as earlier reported by WT, following a protracted period of questionable management and disputes that left the company crippled for several months. At least 18 institutional and individual investors had furnished Kloud Commerce with capital, including Zedcrest Capital, Niche Capital, and Afropreneur Angel Syndicate, among others.

Former executives and employees who worked with D.O at Kloud Commerce had, in interviews with WT, painted a picture of an abrasive founder who was painting a rosy picture to investors despite scarce progress while continuously shattering the motivation of the team he had assembled.

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