The Dutch holding firm behind Kwik, Africa Delivery Technologies Holding, has been declared bankrupt by an Amsterdam court after a case from a former executive.
Despite this ruling, Kwik CEO Romain Peroit-Lellig insists that the company’s Nigerian operations are unaffected and financially stable. But a closer look reveals a web of unresolved debts, lawsuits, and widening cracks in the startup’s public reports.
This is a bad month for Kwik and it’s a case study in how unresolved debt, opaque cross-border structures, and shareholder defiance can converge to trigger a legal reckoning.
The bankruptcy was initiated by Adam Grant, a former head of sales who had previously taken the company to court for wrongful dismissal. He won a $120,000 settlement, later adjusted to $75,000.
Only one payment, $25,000, was made. Kwik withheld the rest, pointing to issues over Grant’s French tax obligations.
“We asked [Grant] to guarantee us that he will take care of his income tax obligations. As usual, he refused to do so and instead, he filed for bankruptcy for his balance,” Peroit-Lellig said.
The Dutch court wasn’t convinced. It rejected the tax defence and ruled in favour of Grant, allowing the bankruptcy to proceed. Grant didn’t act alone, other creditors, including Nigerian lending firm B54, backed his assertions of Kwik’s reluctance to repay outstanding obligations.
B54, which extended a $50,000 loan to the startup, has also initiated legal action. According to co-founder Lanre Oyedotun, “B54 has had to institute legal proceedings against Kwik both locally and in Nigeria, and is joining other creditors in foreign proceedings.”
Peroit-Lellig disputes the weight of B54’s claim. “It is typical for companies to draft court documents to pressure debtors into payment, but they never file them in court due to consequent legal expenses,” he said, maintaining that no formal service has been made. He says he’s tried, unsuccessfully, to reach B54 for resolution.
Aside from the current case, Kwik has had issues with litigation. In May, Guardian Nigeria sued the company over unpaid rent for a warehouse in Abuja. According to Tive Ibru, a director at the Guardian, the case is still active. Again, Peroit-Lellig says he hasn’t been properly served.
The CEO insists these court cases do not compromise operations. He says Kwik has raised $6 million in total, $1 million of that as recently as this year, and only owes $2 million in convertible notes. “Whatever happened is not affecting the operations of the company,” he said.
“The staff are getting paid from the Nigerian company, and riders are getting paid. Everybody’s getting paid. Fulfilment and delivery services are continuing without disruption.”
Even with this confidence, the declaration of bankruptcy hands control of the parent firm to a third-party administrator, who is now responsible for managing its assets and settling creditor claims.
Involuntary bankruptcy means the court found enough evidence to conclude that the company lacked both the funds and the intent to settle what it owed.
Kwik’s situation differs from that of Gokada, another Nigerian delivery startup that filed for voluntary bankruptcy earlier this year. Gokada opted for Chapter 11, protecting itself while restructuring its debt. Kwik didn’t get that option, its creditors forced it into this.
Startups with offshore registration like Kwik are now being cautioned, especially after a Partech Africa report revealed that investor confidence in such structures has plummeted. Nigerian startup funding dropped 37% in 2024 alone.
And PwC Nigeria’s research further outlines how rising operating costs and limited funding are squeezing the logistics market, making Kwik’s downfall feel less isolated, and more like a warning sign.
Kwik maintains it is trying to settle its issue with Grant’s legal team. But for many watching, this bankruptcy casts doubt both on Kwik’s financial standing and also on the sustainability of similar foreign-registered African startups.
Still, the company insists it’s not over. “We deeply appreciate the continued support from our customers, partners, delivery riders, and shareholders,” it said in a statement. “We remain fully committed to delivering high-quality service and value to all stakeholders.”
