The news:
- Twiga Foods, a Kenyan eCommerce platform, has agreed with the Google Cloud reseller, Incentro Africa, to settle the lingering Google Cloud Services debt dispute.
- According to Zuber Momoniat, CFO of Twiga, Incentro has consented to drop the lawsuit and renegotiate the contract's original terms with Google "in light of the current global economic climate."
- Spanning more than four months, the financial dispute between the two companies started in September 2023 when the cloud service provider sued the agritech firm, demanding $261,878.75 in debt payments or face liquidation.
The alleged debt came from Incentro's services under the Google Partners Funding Programme, which included Google Cloud Services and Partner Service Funds.
In response to the liquidation threat, Twiga Foods filed a countersuit to forestall Incentro’s plan to kickstart a liquidation process. The agritech startup argued that the statutory demand by Incentro was premature and driven by ulterior motives.
Twiga Foods stated in court documents that it strongly opposed Incentro's premature claim, particularly given that the agritech was already in discussions with Google Ireland Limited, the primary Google Cloud Services provider, about the bills. The company argued that the demand was made in bad faith.
Twiga Foods confirmed a month later that it was in talks with Incentro about the same bill but maintained its initial claim about the credibility of the cloud providers' suit.
The company also assured stakeholders and customers of its health despite layoffs and an adjustment to its business model.
In December 2023, a Nairobi, Kenya, court granted Twiga Foods and Incentro three months to resolve their dispute over the amount Twiga owed Incentro.
While Incentro claimed it was owed $450,000 in unpaid bills and a delayed bonus from Google, a bump from the initial $261,878, Twiga argues that it only owes $94,000.
After much discussion, both companies have agreed to settle the debt dispute out of court, following recent undisclosed investments into Twiga Foods by Creadev, Juven, TLcom Capital Partners, and DOB Equity.
Incentro Africa CEO Dennis de Weerd commented on the progress, saying the deliberation was largely successful thanks to the exceptional work of Twiga's Chief Financial Officer, Zuber Momoniat. He explained that this collaboration expands the relationship between Twiga Foods and Incentro Africa.
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Peter Njonjo and Grant Brooke (former CEO and co-founder) launched Twiga in 2014. In 2019, however, Brooke stepped down and handed over to Njonjo. In a similar turn of events, Njonjo also resigned as CEO shortly after announcing a six-month sabbatical.
