Afrigather Copia Global, a Kenyan B2C e-commerce startup that has raised $123 million in enterprise funding throughout seven rounds, is contemplating shedding staff or shutting down, citing “uncertainties.”
The layoffs, which might have an effect on over 1,000 staff, can be a drastic cost-cutting measure for a corporation that introduced an extension of its Sequence C spherical in December 2023.
”You will need to spotlight that uncertainties lie forward. In consequence, it is vitally seemingly that there shall be a discount in our workforce and it’s attainable that the fee of salaries may very well be in danger,” mentioned Tim Metal, Copia’s CEO, in an inner memo seen by TechCabal.
Metal added that shedding staff can be the primary plan of action to rein in prices. Ought to that fail, the corporate might shut down, becoming a member of different Kenyan e-commerce startups which have closed store because the COVID-19 pandemic, like Wefarm, an agritech startup connecting farmers to farm enter distributors, and Zumi, a B2B connecting retailers to suppliers.
Whereas the startups have blamed funding drought and difficult market situations for his or her woes, experts suggest that the viability of the enterprise fashions, absence of trade information to tell growth, poor infrastructure, and buyer belief deficit may very well be among the many elements inflicting the closures.
“The corporate is required, in compliance with the regulation, to present all workers one (1) month discover of potential redundancies and to undertake a one (1) month consultancy interval with all doubtlessly impacted workers. Due to this fact, all workers are receiving this discover. A discover will even be given to the Labour Officer as required by regulation,” Metal mentioned.
Copia is certainly one of Kenya’s most well-funded startups. It introduced a $50 million Sequence C funding spherical in 2022 and a $20 million extension of the identical spherical in December 2023.
Regardless of Copia claiming that it had “cracked the nut of last-mile supply” and constructed a fulfilment system for patrons in distant elements of the nation, indicators of pressure turned apparent in 2023 when it laid off over 700 staff and closed Uganda operations barely two years into the market.
With an financial downturn and tight capital markets, Copia embraced a technique of optimising operations to maximise its present assets. This included a 25% workforce discount that affected 350 staff.
In July 2023, Copia informed TechCabal that it deliberate to stay worthwhile and higher serve prospects by streamlined processes and value discount. It suspended plans to increase to different African markets, together with Nigeria, Ghana, South Africa, and Mozambique, citing the necessity “to speed up Copia’s drive to profitability.
Copia was based by Tracy Turner and Jonathan Lewis in 2013 to permit prospects in distant areas to order items by its platform and delivered to them by its community of brokers.
