The board of directors of the parent holding company of Capiter, a Cairo-based B2B e-commerce startup, approved a motion to remove the founding brothers from their positions as CEO and COO, effective immediately.
In the company’s official statement, they stated that this action was due to the Co-Founders’ inability to fulfill their fiduciary duties over the past week and not reporting to representatives of the board and shareholders during on-site in-person due diligence meetings for a potential merger.
It’s important to state that the announcement was released after news of the escape of the two brothers with up to 33 million dollars the company received in funding. The funding was co-led by Quona Capital and MSA Capital alongside additional investors Savola, Shorooq Partners, Foundation Ventures, Accion Venture Lab, and Derayah Ventures.
You can know more about the funding here.
Others say that the brothers did not particularly steal the money but burned it and failed to fulfill their promises to investors.
It’s important to note that if you take a simple look at Linkedin, you will find the majority of the employees of the company are currently looking for new jobs, with several former employees confirming the story.
The company currently has approximately 2,700 employees and has several contracts with more than 50,000 merchants and partnerships with hundreds of companies.
As of the publishing of this article, there’s no official news of whether the co-founders stole or burned the $33m. The official reason behind their removal from their position is that they failed to attend a meeting.
The company did not comment on the rumors, and. the brothers did not release any statements.
But if the news turns out to be true, this will be a disaster for the startup ecosystem in Egypt, and it will definitely be a Netflix crime documentary worthy of unfolding events.