How Flutterwave Scandals Have Been Debunked Many Times Upon Arrival

[Amazin Zion]

For the past years, fintech has grown to become a substantial investment in the financial sector, as many firms believe that with the adaptation of fintech in Africa, offering financial services will become easier than relying on traditional banks. Even with that, some fintech companies, like Flutetrwave, amongst many others, have gotten into scandals in the past years.

Some allegations were levelled against the CEO and founder of Flutterwave, Olugbenga ‘GB’ Agboola by some employees who spoke about how toxic the work environment is.

Flutterwave, which was founded in 2016 in Lagos, Nigeria, has been providing customizable payment application programming interfaces for businesses operating in Africa while also assisting international firms like Uber and Booking.com to expand their business services across the continent.

In Africa, Flutterwave has expanded to 34 countries across the continent and processed 200 million transactions, worth more than $16 to date. Records show that 900,000 businesses globally use the company’s service to process payments in 150 currencies and across different payment modes.

In 2021, the company achieved unicorn status and became the continent’s most valuable fintech start-up in February with a Series B funding round from investors including B Capital Group, Tiger Global, Whale Rock Capital, and Alta Park Capital, bringing the firm's valuation to more than $3 billion.

It didn’t take long after this milestone for the company to be accused of some scandals. The Flutterwave scandal started in April after Clara Odero, CEO of Kenyan fintech Credrails, and a former Flutterwave employee came out to accuse Mr Agboola of bullying her for a long period—-she also accused the company of being careless, which led to fraud. It didn’t take time for Mr Agboola to deny all the accusations levelled against him.

Read more: https://www.investingport.com/how-flutterwave-scandals-have-been-debunked-many-times-upon-arrival/

 

[LagosPolice]

The Flutterwave scandal almost ruined the company, from accounts getting frozen to fraud allegations and Fraud attempts by hackers among many other issues that Flutterwave faced as the biggest financial start up in Africa.

 

[LagosPolice]

Flutterwave was facing a big scandal in Kenya and the Kenyan government went hard on the company with many sanctions.

In February, some accounts on Flutterwave's platform were reportedly hacked, leading to losses of over $3.6 million from customers' funds. The company denied this report, and said that its system detected an “unusual trend of transactions on some users,” triggering a

 

[LagosPolice]

• Fintech company Flutterwave is scoring international business partnerships amid a series of controversies.
• It announced strategic partnerships with Audiomack, Microsoft, and Token.io in one month. Investors and experts believe Flutterwave’s size and importance in the African tech ecosystem make it almost too big to fail.

After a year of staying in the news mostly for controversies, Africa’s fintech poster child is finally making headlines for its positive business moves.
In June, Flutterwave announced three partnerships that could help its business grow. On June 6, the company said it was collaborating with payment infrastructure provider Token.io to give its merchants access to customers in the U.K. and Europe. On June 21, Flutterwave said it would provide payment services to popular U.S. music-streaming platform Audiomack. And the very next day, the company said it had entered into a five-year agreement with Microsoft to facilitate transactions on Azure across the African continent. “With Flutterwave and Microsoft’s plans to power payments to-and-from Africa, this collaboration is an incredible opportunity to impact growth across the continent,” Flutterwave said.
In an email to Rest of World, Flutterwave CEO Olugbenga Agboola said the company is in talks for more such deals in the future. “We are building something for education payments and have concluded a partnership that will improve international aviation payments for Africans, too,” he said.
These back-to-back announcements come after a year of scandals that rocked Flutterwave. Since April 2022, the company has faced allegations of mismanagement, sexual harassment, administrative errors, and security breaches, among other issues. Experts, however, believe Flutterwave is likely to emerge from the bad press and legal hurdles because of its scale and importance in the African tech ecosystem, which make it almost too big to fail.

 

[LagosPolice]

Is Flutterwave safe to use?


At Flutterwave, we take security seriously so every payment made on our platform is 100% secure, even exceeding industry standard.

What happen to Flutterwave?


The Asset Recovery Agency's case against Flutterwave, Africa's fintech giant, has been officially closed by the Kenyan High Court. The court criticized the agency for pursuing legal action without conducting a proper investigation, denouncing it as reckless and inappropriate.

Which country owns Flutterwave?


Flutterwave is a Nigerian fintech company that provides a payment infrastructure for global merchants and payment service providers across the continent.

 

[LagosPolice]

Africa’s most valuable unicorn Flutterwave is still not off the hook in Kenya. About $3 million of its money that was confiscated in the second government seizure over money laundering and fraud claims remains frozen, in two banks, and 19 mobile money accounts (M-pesa paybill numbers), as the matter is before Kenya’s high court.

The $3 million funds seizure happened late August last year, less than two months after Kenyan court froze $52.5 million from Flutterwave and other entities including Elivalat Fintech, Boxtrip travel and tours, Bagtrip travels, Hupesi Solutions, Cruz Ride Auto Ltd, and Adguru.

With each seizure, the country’s Assets Recovery Agency (ARA), a state agency tasked with tracing proceeds of crime, filed a suit.

 

[LagosPolice]

Nigerian Fintech Flutterwave Secures Money Transfer Licenses in 13 US States​

The Nigerian fintech unicorn revealed on Dec.7 that it has obtained money transfer licenses in 13 U.S. states. Flutterwave’s partnership with a licensed financial institution also means that it can now serve customers in 29 states in the U.S. Flutterwave CEO suggested that the fintech hopes to expand its footprint in the country by securing more such licenses.
The Nigerian fintech unicorn, Flutterwave, recently announced that it has secured money transfer licenses in 13 U.S. states. The licenses enable Flutterwave users to enjoy faster, cheaper, and more secure transfer of money from the United States to Africa and back. Flutterwave’s partnership with a licensed financial institution also means that it can now serve customers in 29 states in the U.S.

According to Flutterwave’s Dec. 7 statement, the licenses obtained by the fintech not only enable its sending application but also enterprises that use its platform for last-mile payout globally.

 

[LagosPolice]

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