Copia World seeks recent funding after this week’s layoffs

Copia World seeks recent funding after this week’s layoffs

Copia World, the Kenyan B2C e-commerce startup that entered administration on May 24, remains to be a going concern regardless of layoffs that affected 1,060 workers on Thursday.

Directors advised workers in termination letters on Friday that they goal to proceed the enterprise and reduce operational prices as the brand new management seeks to boost new capital. Copia appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint directors on Could 24.

“We should make sure the enterprise is correct sized and proper formed to fulfill the brand new digital enterprise alternative and place the enterprise for worthwhile progress. To maximise the potential for Copia to succeed long run, it’s essential to make some tough choices relating to its present operations,” mentioned Makenzi Muthusi, Copia’s joint administrator, in a termination letter seen by TechCabal.

“Sadly, your employment with Copia Kenya Restricted (beneath administration) shall be terminated, efficient seventh June 2024. This determination is on no account a mirrored image of your efficiency or contributions to the corporate however fairly a consequence of the present circumstances.”

Copia advised the workers the corporate would inform them about potential employment alternatives, signaling the administrator’s dedication to turning across the ailing e-commerce large. Nevertheless, it stays to be seen how the brand new administration will persuade new buyers to inject new capital after related efforts to save lots of the corporate collapsed in early Could.

The layoffs comply with the corporate’s determination on June 4 to cease taking orders from Central and Eastern Kenya, a sign that the directors are rolling again operations to arrest cashflow challenges.

Copia World was based by Tracey Turner and Jonathan Lewis in 2013 to permit retailers in rural and peri-urban areas to restock important items utilizing USSD or a cell app. It obtained $123 million in enterprise capital funding, becoming a member of a rising listing of companies which have obtained buyers’ goodwill however have struggled to activate revenue.

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