Africa Delivery Technologies Holding, the Dutch parent company of Nigerian last-mile delivery platform Kwik, was declared bankrupt and placed under administration by an Amsterdam court following a legal dispute with a former executive to whom the company owes about $50,000.
Despite the bankruptcy filing, Kwik’s CEO, Romain Peroit-Lellig, insists the company is financially sound and that the ruling does not affect its Nigerian operations. Kwik currently serves over 300,000 merchants in Nigeria and recently secured $1 million in fresh funding.
This case marks the second notable bankruptcy involving a Nigerian logistics startup this year. In January, Gokada, another last-mile delivery company, filed for Chapter 11 bankruptcy in the US, a voluntary restructuring process. Kwik’s situation, however, is an involuntary bankruptcy initiated by creditors who claim the company is unwilling or unable to repay its debts.
The bankruptcy claim was filed by Adam Grant, a former Kwik sales head, who had previously sued for wrongful termination and unpaid salaries. After renegotiations, Kwik paid one of three agreed installments but withheld further payments over concerns about income tax liabilities. The Dutch court rejected Kwik’s tax arguments and ruled no additional taxes were due.
Grant argued that Kwik lacked immediate funds to settle its debt and sought court administration to protect creditors’ interests. Other creditors have raised similar concerns about unpaid debts and avoidance of repayment.
One such creditor is B54, a Nigerian startup lender that alleges Kwik defaulted on a $50,000 loan and has petitioned Nigerian courts to liquidate the parent company. B54 has also pursued legal action locally and abroad.
Kwik’s CEO acknowledges the debt but downplays its significance, claiming some legal actions are pressure tactics without formal court filings. Similar disputes have arisen with other creditors, including a Nigerian media company pursuing unpaid rent.
Despite these challenges, Kwik maintains that its Nigerian operations remain unaffected. Staff and delivery riders continue to be paid, and services proceed without disruption. The company says it has raised $6 million in funding to date, including $1 million this year, and only owes convertible notes to shareholders, which it classifies as manageable debt.
Kwik is reportedly in talks with Grant’s legal team to resolve the dispute.
Unlike Gokada’s voluntary bankruptcy filing, Kwik’s involuntary bankruptcy allows creditors to access and liquidate assets. Peroit-Lellig remains confident the situation can be reversed and emphasizes the company’s commitment to its customers, partners, and employees.
“We deeply appreciate the continued support from all stakeholders,” the company said in a statement. “We remain fully committed to delivering high-quality service and value.”