Crowdyvest embarks on debt recovery process to enable payout to investors

Following its inability to meet up with its financial obligations to investors, Crowdyvest has embarked on a debt recovery process to enable the refund of overdue payments.

Crowdyvest embarks on debt recovery process to enable payout to investors

Following its inability to meet up with its financial obligations to investors, Crowdyvest has embarked on a debt recovery process to enable the refund of overdue payments.

Founded in August 2019 as part of EMFATO Group and a pivot from Farmcrowdy, Crowdyvest fully exited EMFATO Group in March 2021 through a debt acquisition agreement where it acquired Farmcrowdy’s debt at the time.

Stating the reason behind the delayed payments in a press statement made available to Benjamindada.com, Crowdyvest said that, "the ill-advised debt acquisition model as well as failed projections to onboard equity investors and long term financing, and the ongoing defaults by Crowdyvest's impact partners has led to the inability to pay all monies plus interests".

Crowdyvest has hired independent consultants to audit the organisation's operations while defaulting partners have been served demand notices to hasten the payback process.

The statement further stated that the deposit and withdrawal options on the platform have been disabled to ensure that no new deposits are credited into the system while complete attention is paid to the debt recovery and payout process.

In 2021, Crowdyvest said its user base grew from 50,000 customers to 140,000 customers in 8 months with a cumulative transaction value of more than $35 million.

Related: Why agritech crowdfunding startups are unable to payout

Last November, Crowdyvest introduced Crowdyvest Yield, a catalogue of alternative offers that include commodity-specific projects and discretionary plans available to members ranging from short to long term tenors across a wide range of sectors.

Crowdyvest Yield was designed to build a saving and investment culture based entirely on their capability with product prices are still as low as ₦1,000 and return up to 25% per annum

In addition to the app re-launch Crowdyvest has also partnered with UBA Global Investor Services Limited and Parthian Securities Limited, an investment brokerage firm licensed by the Securities Exchange Commission (SEC) to ensure proper fund utilization, transparency and compliance.