Nigeria’s fraud investigation agency, the Economic and Financial Crimes Commission (EFCC), has detained founder of Kloud Commerce Olumide Olusanya.
It’s unclear at this point whether the EFCC is responding to a petition filed by Kloud Commerce investors, or if this is an entirely different issue.
An email to the lawyers who represented Kloud commerce in 2022 was not replied to at the time of this report.
Here is what clear. In October 2022, investors at the startup petitioned EFCC to investigate founder and CEO Olumide Olusanya who has been accused of fraud and misappropriation of funds.
According to an investigation published by pan-African press WeeTracker, Olusanya misled investors to believe that the startup was already powering retail sales for 10 global brands—including Nike and Adidas—in Nigeria and Ghana. The founder also told investors that one product was live in 800 locations across Ghana and Nigeria. Asides from claims of non-existent products, Olusanya also redirected funds meant for the startup, allegedly withdrawing ₦4 million ($9,000) as “entertainment allowance” between August and September 2021, as well as ₦22 million ($50,000) for publicity events in Ghana where he spent $100/night in hotels.
The poor management led the startup to shut down in September 2022 with Olusanya firing several employees despite owing salaries.
This is a developing story.
