In a surprise announcement this afternoon, mobile social network Mxit announced that CEO Alan Knott-Craig Jnr has stepped down, purportedly over a difference of opinion with shareholders, following a huge cash injection into the business.
The announcement comes as Mxit, Africa's largest mobile social network, says it is set for massive growth, "following a R100 million investment by shareholders".
"While the shareholders and I share the same vision, we differ on how to get there. Therefore, I agreed to go my own way. I wish them all the best for the future. Mxit is Africa's biggest tech success story, and can be a global success story," says Knott-Craig Jnr.
He would not be drawn further on the issue.
Francois Swart, the Mxit's current CFO, will act as the interim CEO. The company says it will be recruiting a new CEO and other new executives to drive the expansion.
In a statement issued by Mxit, the shareholders say that the company is SA's biggest tech success story, "in no small part due to Knott-Craig's involvement and vision over the past year".
"Mxit has a window of opportunity and is pursuing aggressive growth by increasing the user base in Africa through partners in targeted African countries," it adds.
Mxit was founded in 2005, hitting profitability in September of the following year.
In September last year, World of Avatar - headed by Knott-Craig Jnr - agreed to buy 90% of the Stellenbosch-based social messaging service, for an undisclosed amount. This interest was held by shareholders MIH Holdings - a Naspers subsidiary - and Mxit founder Herman Heunis
The remaining 10% shareholding was to remain in a staff trust established by Heunis, in 2005. Heunis exited the company at the time of the takeover.
Recently, Mxit bought out all of 2010 Silicon Cape start-up Motribe, after Knott-Craig Jnr decided to buy out shareholders 4Di Capital, Nic Haralambous and Vincent Maher. The deal did not signify a change in strategy or a buyout spate, he said at the time.
Knott-Craig Jnr also headed up wireless company iBurst during his career in the sector.
Additional reporting by Nicola Mawson
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