Thrive Agric Completes the Payment of Investment Returns to its Crowdfunders
Thrive Agric Completes the Payment of Investment Returns to its Crowdfunders
There was joy all around as Thrive Agric, a formerly troubled agritech startup, announced that it had paid all returns owed to crowd funders on its platform.
Recall that eight months ago, in September 2020, the agritech platform was heavily criticized by irate investors for failing to settle their returns, thereby constituting a contract breach.
Investors spoke candidly about their unpaid capital and the returns on farm ventures with which they partnered on the platform. Individuals claimed they had not been paid despite the fact that their investments had matured for more than four months.
Impact of COVID-19
On the other hand, the financial difficulties are a result of the economic downturn triggered by the covid-19 pandemic in Nigeria.
In an interview, the startup clarified that business began to slow in April for its partners who manufacture frozen chicken. This was because supermarkets in Lagos, Abuja, and Port Harcourt were closed, resulting in lower sales volumes than usual.
The uproar resulted in Uka Eje, the company's CEO and founder, resigning to become Chief Operations Officer. Adia Sowho, the former VP of Growth at Migo, was appointed interim CEO in his place.
The company promised to repay investors by March 2021 or by April 2021 at the latest. Today's announcement demonstrates that it has kept its promise.
The startup stated in a tweet on its official account, "We are pleased to inform you that Thrive Agric has fully completed all payments due to all crowd funders on our platform." We want to express our gratitude to all of our subscribers for their patience and understanding during this trying time."
Investors Reactions
Investors and members of the general public reacted to the announcement by Thrive Agric. While some commended them for surviving the storm, others urged defaulting agritech startups to follow their lead.
Following the company's tweet, several individuals indicated that the company earned their trust with the way it handled the situation. Obinna Nwachuya tweeted, "Thrive Agric has demonstrated resilience, persistence, and strength despite being tried, tested, insulted, and pushed to the limit." They've earned my regard, confidence, and business.”
Everest Nwagwu, another individual, stated, "This is how you run a business: through communication and well-defined timelines." You guys dealt with EVERYTHING. I am pleased, and I am aware that you all worked hard for this, and as a result, the only agricultural investment platform available going forward will be Thrive Agric.”
Fred Usulor expressed his confidence in the startup by saying, "I'm still willing to invest with you guys at any time."
As the company regains its footing and accelerates its operations, the reaction to this news indicates a greater degree of relief among investors whose funds have been returned. Additionally, there is some level of confidence, owing to the process. After all, the path back to its former glory and beyond may not be so far off.
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