54Gene founder sues investors over company collapse

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Victoria from Techpoint here,

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54gene founder sues investors over company collapse
TikTok gets 3-month ultimatum in Egypt
Egypt’s Breadfast bags $10M from EBRD

54gene founder sues investors over company collapse

What really happened at 54gene? A Federal High Court in Lagos has stepped in to stop the sale of the startup’s assets, including the biodata of 100,000 Nigerians reportedly priced at $3 million. It’s the latest twist in the dramatic collapse of what was once one of Africa’s most promising healthtech companies. Court documents, seen by TechCabal, show that founder Dr. Abasi Ene-Obong is fighting to stop the company’s dissolution, and he’s naming names.

Ene-Obong is pointing fingers at 54gene’s biggest investors — Cathay AfricInvest Innovation Fund and Adjuvant Capital. In a petition filed in July 2025, he accuses them of forcing the company into bankruptcy, rejecting a $110 million rescue deal, and pushing him out as CEO. He even claims they threatened to spread false rumours of a fraud investigation to pressure him. Now, they’re trying to sell off the assets, including sensitive genetic data, without proper oversight.

This is no small startup spat. 54gene, once valued at $170 million, raised over $45 million in funding, built Africa’s largest biobank, and helped Nigeria ramp up COVID-19 testing during the pandemic. But cracks started to show after COVID demand dipped and a failed pivot to molecular diagnostics left the company bleeding money. Investors reportedly insisted on raising a $100 million Series C round in 2022, despite the founder’s warnings that it wasn’t feasible.

Behind the scenes, things got messier. Ene-Obong says he secured $80 million in investor commitments at a $200 million valuation, only for the board to block the deal and tell him to stop fundraising. He was then forced to resign, and the investors allegedly appointed a local lawyer to oversee 54gene Nigeria and moved key assets there. His offer to acquire the company for $3 million was accepted at first, then later rejected under pressure.

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Even before the collapse, there were signs of tension. In 2020, Adjuvant reportedly kept slashing 54gene’s valuation before finally investing at less than half the original amount. In 2022, the board offered the company a $2.4 million loan with harsh conditions, including a 4× liquidation preference and loss of founder veto rights. Ene-Obong says they demanded four times their investment before anyone else could get paid.

Now, the court will decide what happens next. At stake is not just a startup but sensitive data, community trust, and the future of African genomics. Ene-Obong says the mission was always about ethical research and improving health outcomes for Africans. But as the drama plays out in court, the big question remains: who really owns 54gene’s legacy?

TikTok gets 3-month ultimatum in Egypt

TikTok is under fire in Egypt again, and this time, it’s got a tight deadline. The app has been given three months to clean up its content and align with what officials call “Egyptian social and moral standards,” per Ahram Online. MP Ahmed Badawi revealed the ultimatum during a TV interview, following a high-stakes meeting between TikTok execs, Egypt’s telecom regulator, and parliament’s Telecommunications Committee.

During that closed-door meeting, TikTok’s regional CEO promised changes to its content moderation approach. The goal? Filter out videos that clash with local values and avoid running afoul of Egypt’s increasingly watchful eye on digital platforms.

Badawi made it clear that Egypt has the legal muscle to ban platforms outright, but he doesn’t think that’s the best way forward. Instead of pulling the plug, he’s pushing for tighter rules and new legislation that forces platforms like TikTok to play by Egypt’s rules.

Things have already started shifting. Certain types of content are being quietly restricted, and Badawi says the committee is keeping a close watch. If TikTok doesn’t meet the expectations, authorities are ready to step in again.

This all comes amid mounting public pressure to shut the app down. Critics say TikTok is promoting content that disrespects Egyptian values and tarnishes the image of women. Between July 31 and August 2, at least six TikTokers — mostly women — have been arrested over allegations ranging from indecency to spreading false information.

One viral video in particular poured fuel on the fire. A TikToker claiming to be the secret daughter of former President Hosni Mubarak went on a wild rant about organ trafficking and celebrity conspiracies. That video triggered legal backlash, including defamation charges. Meanwhile, with over 32 million adult TikTok users in Egypt, the platform’s future in the country is hanging in the balance.

Egypt’s Breadfast bags $10M from EBRD

Egypt’s online grocery startup, Breadfast, just got a fresh $10 million boost from the European Bank for Reconstruction and Development (EBRD) as part of its Series B2 round. The development bank joined the round, led by Novastar Ventures, signalling strong belief in Breadfast’s potential to scale in a tough funding environment.

With a valuation now sitting at roughly $382 million, Breadfast is one of the few African startups trending up. The new funds will help it expand fulfilment centres in Cairo, Giza, Alexandria, and Mansoura and take its operations to even more cities across Egypt.

Investor confidence in Breadfast is high, especially from Swedish firm VNV Global. The firm’s latest report shows its 7.9% stake in the company is now worth $30.2 million, nearly double what it invested back in 2021. That’s in stark contrast to its other African bets, like Wasoko and SWVL, which have seen their valuations take a hit.

Founded in 2017, Breadfast started out delivering baked goods and has since grown into a fast, full-range grocery delivery platform. Thanks to its vertically integrated model, owning bakeries, fulfilment centres, and last-mile delivery, it’s now handling nearly a million orders a month and serves more than 300,000 active users.

The EBRD isn’t just backing a grocery app; it’s betting on jobs and tech infrastructure. The bank says its investment will boost competition, speed up Breadfast’s tech improvements, and help the company grow its own branded products. Breadfast is also planning training programmes for both blue- and white-collar staff to support its scale-up.

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And it’s not stopping at groceries. Breadfast has launched a fintech service called Breadfast Pay, offering features like savings, deposits, withdrawals, and its payment card. The goal? Build a super app that taps into Egypt’s large underbanked population while keeping customers coming back.

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