Nigerian HR software provider Bento is pausing transactions following the decision of co-founder and CEO, Ebun Okunbanjo, to resign from his role. Okunbanjo informed investors in an email and noted plans to embark on a new journey with Ada AI, an AI-powered sales assistant.
Okunbanjo’s resignation comes as the startup battles allegations of failing to remit PAYE deductions for some of its clients. AltSchool co-founder, Akintunde Sultan previously alleged that the startup had failed to remit PAYE and provided fake receipts stating it had done so. Meanwhile, the Lagos Inland Revenue Service has launched investigations against the startup.
In the email to investors, Okunbanjo blamed his decision on Bento’s business model not working.
“I started to confide in some of you early last year that our thesis was not working. We did change it to something more pared down, but it is time for me to journey on. If Africa adopts the Western style of taxation and remittances, these companies are gold mines,” the email read.
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This isn’t the first time, Okunbanjo has had to step down from the company. Following reports of a toxic work environment in 2022, he briefly left his role and according to the email to investors, stepped down briefly in 2024.
While the recent allegations appear to have sped up his decision to leave the company, the resignation last year paints a worrying picture of the startup’s management. The startup claims to have processed more than $40 million in payroll since its inception, and Okunbanjo has repeatedly talked up its achievements.
With Okunbanjo’s resignation, Bento’s board will be on the lookout for a suitable replacement, but it also opens up acquisition opportunities for players in the space. While HR tech companies have sprung up across Nigeria in recent years, the market opportunity may not be significant for a country that has the informal sector providing most of its jobs. As a result, consolidation might be the way to go.
