DataPro Limited, a credit rating agency based in Nigeria, has suspended the credit rating of Tingo Mobile due to the company’s alleged failure to provide the necessary additional information to maintain its assigned rating.
Despite the challenging business environment in Nigeria, DataPro initially assigned Tingo Mobile a long-term rating of ‘A’ with a positive outlook for 2023/2024. However, this recent development follows damaging allegations made by Hindenburg Research, accusing the fintech company of fabricating financials and raising doubts about the credibility of its founder, Dozy Mmobuosi.
DataPro Gives Explanation
DataPro issued a statement explaining that the suspension of Tingo Mobile’s credit rating adheres to international best practices due to the company’s lack of clarity regarding its recent acquisitions and financial structure. Despite engaging with Tingo Mobile in an attempt to obtain the required information, DataPro noted that the company did not meet the given timeline.
“In the past week, DataPro has actively sought clarification from Tingo Mobile regarding its recent acquisitions and financial structure. Unfortunately, the company did not utilize the provided timeline to furnish the necessary information for us to sustain the assigned rating. We want to emphasize that this statement is made by standard rating procedures worldwide and without any bias or ill intentions.”
This suspension raises concerns about Tingo Mobile’s financial credibility, reputation, and investor confidence. Hindenburg Research’s report, which emerged shortly after DataPro initially assigned Tingo Mobile a long-term rating of ‘A’ with a positive outlook for 2023/2024, alleged that the company had “fabricated” its financial statements. Despite Tingo Mobile’s denial and rebuttal of the report, these allegations resulted in the company’s stock value decline.
According to a report by Technext, Hindenburg Research accused Tingo Mobile of making false claims regarding its diversified business interests in mobile phones, food processing, and an online food marketplace for Nigerian farmers. The report highlighted discrepancies related to Tingo Mobile’s $1.6 billion food processing plant, misrepresented partnerships, and misrepresented products.
Hindenburg Research also questioned the validity of Tingo Mobile’s claimed 12 million mobile customers, which could not be verified by the Nigerian Communications Commission (NCC). Furthermore, the report discovered that the company’s website and presentation materials used stock photos of farmers with mobile phones, raising further doubts.
Regarding Tingo Mobile’s fintech product, Tingo Pay, which is described as a “seamless payment system,” the report identified discrepancies such as the company claiming a partnership with a bank that denied any agreement with Tingo International regarding a payment system.
These allegations from Hindenburg Research have cast serious doubt on Tingo Mobile’s credibility and integrity, raising significant concerns about its operations and the trust of its investors.
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