Kepple Africa Ventures Cuts Ties with Wapi Pay Amid Assault Allegations
In a significant move that has sent ripples through the startup ecosystem, Kepple Africa Ventures announced its decision to sever ties with Wapi Pay, a Kenyan fintech startup. This decision comes in the wake of serious allegations against Wapi Pay’s co-founders, Eddie and Paul Ndichu, who were reportedly involved in an altercation with women at a hotel in Nairobi. Takahiro Kanzaki, founder of Kepple Group and general partner at Kepple Africa Ventures, emphasized the firm’s zero-tolerance policy towards such conduct, stating, “We will relinquish all the rights of our investment stake in Wapi Pay.”
The Incident That Sparked Outrage
The controversy erupted after a video surfaced on social media, showing the Ndichu twins in a physical confrontation with two sisters. The footage, which quickly went viral, depicted a scuffle that allegedly stemmed from the sisters’ refusal to socialize with the co-founders. The public outcry was immediate, with many condemning the behavior displayed in the video.
Wapi Pay’s Response
In response to the allegations, Wapi Pay’s founders issued a statement expressing regret over the incident. They claimed that the events were misinterpreted, asserting that their involvement was an attempt to mediate a dispute between the two women. “To be clear, Paul and Eddie got involved in an attempt to neutralize a confrontation between two women and to defend themselves from certain aggressors,” the statement read. This defense, however, has not quelled the backlash, as many remain skeptical of their narrative.
Kepple Africa Ventures and Its Investment in Wapi Pay
Kepple Africa Ventures had previously invested in Wapi Pay, recognizing the startup’s potential to facilitate cross-border payments between Africa and Asia. The fintech company aims to address the growing demand for efficient payment solutions, particularly as trade relations between Africa and countries like China and India continue to expand. Wapi Pay, headquartered in Singapore with offices in Kenya and China, has positioned itself as a key player in this space, working with local banks to process payments quickly and reduce high remittance fees.
Recently, Wapi Pay raised $2.2 million in a pre-seed funding round, led by EchoVC and MSA Capital, with participation from Kepple Africa Ventures and other investors. The startup aims to process $500 million in remittances and significantly increase its user base by the end of next year.
The Future of Wapi Pay
With Kepple Africa Ventures distancing itself from Wapi Pay, questions loom over the startup’s future. The loss of such a significant backer could impact its operations and growth trajectory. Other early investors have yet to publicly comment on the situation, leaving stakeholders and industry observers wondering about the potential ramifications for Wapi Pay.
As the situation unfolds, the startup community is closely watching how Wapi Pay navigates this crisis and whether it can maintain its momentum in the competitive fintech landscape.