The news
- Bento Africa reinstates key personnel to manage outstanding salary disbursements.
- The startup has advised clients to pause payroll funding and pledges to refund clients with pending payments.
After a temporary shutdown, Bento Africa has rehired key staff members to address outstanding payroll obligations.
The move comes after the resignation of CEO Ebun Okubanjo and widespread layoffs, including the company's engineering team. Okubanjo mentioned the shutdown in an email to investors announcing his resignation.
"I have informed the team to pause all transactions so no new money is coming in and we are no longer processing payroll as of maybe 1 hour from now," he wrote.
While Bento’s board has assured clients of its commitment to resolving payroll issues, the company has advised businesses to refrain from funding their payroll positions until further notice.
Since 2024, Bento has reportedly relied on manual payroll processing due to challenges with payment processors and difficulties in reconciling underfunded accounts. This method has led to multiple disbursement delays. Consequently, employees of businesses dependent on Bento's services have faced uncertainties regarding salary payments.
In a recent communication to customers, Bento's board announced that it had successfully paid its staff their January salaries and "reactivated" critical employees to help manage outstanding payroll transactions. However, the company acknowledged that some clients are still experiencing delays and has promised to issue refunds to those with pending payments before the close of business on Tuesday.
Bento’s temporary shutdown has disrupted the operations of many businesses relying on its services. Payroll inconsistencies can affect employee morale and reduce trust in management. However, it also opens the door for competitors to take on disgruntled users.
While the startup’s board remains optimistic about restoring full operations, a clear timeline for resumption has yet to be communicated. In the meantime, businesses and employees are left navigating the uncertainty caused by Bento's service suspension.
