In a financial saga that could rival the most gripping courtroom drama, Tingo Group, Inc. (NASDAQ: TIO), a thriving fintech, agri-fintech, and food company, finds itself locked in an intense battle with the short seller Hindenburg Research. The latest chapter in this high-stakes showdown unfolded on September 5, 2023, when Hindenburg fired another salvo of allegations against Tingo. But Tingo Group is not backing down. In a statement released on September 6, 2023, the company boldly asserts that a comprehensive investigation conducted just days prior has debunked every single claim made by Hindenburg.
This financial thriller began when Hindenburg Research, known for its short-selling strategies, first targeted Tingo Group on June 6, 2023. Allegations of financial wrongdoing and misconduct were hurled at the fast-growing fintech company. However, instead of crumbling under the pressure, Tingo Group decided to fight back.
On August 30, 2023, Tingo Group’s independent directors launched a meticulous investigation into Hindenburg’s claims, leaving no stone unturned. Independent counsel meticulously reviewed evidence and identified areas that warranted further investigation. The company also enlisted the help of a top-tier U.S. law firm to conduct its own inquiry. The result? Tingo Group emerged from this intensive scrutiny with a clean bill of health, confidently refuting each and every one of Hindenburg’s allegations.
read also Why Algerian Tech Talents Are Leaving the Country in Droves
One of the key points of contention was the company’s cash balances. Tingo Group, which operates in multiple countries, held accounts with major banks in Africa. To clear any doubts, the company’s legal counsel obtained bank statements directly from these financial institutions and conducted interviews. The result? The bank balances were confirmed and matched the company’s accounting records, proving that Tingo Group’s financial health was robust.
Hindenburg also took aim at Tingo Group’s relationship with its mobile phone supplier, UGC Technologies Limited. To unravel this mystery, Tingo Group provided extensive documentation of all transactions with the supplier. The investigation showed that Tingo Group’s supplier was indeed UGC Technologies Limited, a legitimate entity with offices in Africa and China, rather than the unrelated UGC Mobile Technologies in the U.S. This revelation further discredited Hindenburg’s claims.
The drama continued with Hindenburg’s allegations regarding Tingo Group’s cooperatives. Ailoje Royal Farms Multi-Purpose Cooperative and Kebbi (Dala) Multipurpose Cooperative Society, both key players in Tingo Group’s operations, were called into question. However, Tingo Group’s outside counsel conducted on-site investigations, inspecting a mountain of documentation and conducting video interviews with cooperative leaders. The results were crystal clear: these cooperatives were legitimate and played a vital role in Tingo Group’s business.
read also Ghana’s Oyster Agribusiness Secures Funding to Propel Sustainable Agriculture
As if that wasn’t enough, Tingo Group’s inventory management was scrutinized, with allegations of discrepancies in the handling of inventory. Tingo Group swiftly dispelled these accusations, providing a clear timeline of inventory sales that aligned with its financial records.
Hindenburg’s accusations even reached into Tingo Group’s dealings with telecom giants like Airtel. Yet again, Tingo Group was ready with evidence showing that it did not directly provide airtime and data services, instead relying on third-party vendors. The company also explained its Nwassa platform, highlighting its unique USSD-based system designed to operate in rural areas where traditional internet access is limited.
Tingo Group’s audacious response also addressed its flourishing export business, Tingo DMCC. Hindenburg had questioned the export records, but Tingo Group revealed that marine shipping records only represented a portion of their export activities. Overland transport was not accounted for in Hindenburg’s review.
And the climax of this financial thriller? The 38 questions submitted by Hindenburg on August 9, 2023, were systematically answered and debunked through the investigations, leaving no room for doubt.
In the end, the battle lines are clear. Tingo Group stands resolute, asserting that it has weathered Hindenburg’s storm of allegations. The company now turns the tables, investigating Hindenburg’s allegations against the founder of Tingo Mobile and Tingo Foods.
Tingo Group, Inc., a global fintech and agri-fintech conglomerate, remains undaunted in its mission to provide innovative products and services to millions of subscribers across the globe. With a commitment to transparency and integrity, Tingo Group vows to protect its shareholders and its reputation against all comers.
read also Digital Payment Service PayShap Closes in on a Million Transactions
The world watches as this financial saga unfolds, with Tingo Group and Hindenburg locked in a battle of titans, each determined to have the last word in this high-stakes showdown.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con