Copia Global, a once-promising Kenyan B2B e-commerce platform, appears to be on the brink of collapse after reportedly laying off its remaining 1,500 employees.
This follows an initial round of cuts that exceeded 1,000 employees just two weeks ago.
Copia’s downfall has been swift and dramatic. Launched in 2012 and boasting a healthy fundraising history of $123 million across eight rounds, the company began experiencing financial difficulties in 2023.
In July, Copia laid off over 850 employees across Kenya and Uganda, citing economic downturn and limited access to capital. Despite a December 2023 Series C extension round worth $20 million, the company’s struggles persisted.
In an attempt to revive its fortunes, Copia partnered with Visa and launched a mobile app campaign in November 2023. However, these efforts failed to generate sufficient sales. Additionally, the company faced administrative challenges that delayed salary payments for May employees, further eroding trust.
Administration and Uncertain Future
Facing insolvency, Copia entered administration in late May, with KPMG partners Makenzi Muthusi and Julius Ngonga overseeing the process. While the administrators aimed to implement a cost-cutting strategy and restore profitability, the complete workforce layoff casts a dark shadow on Copia’s future.
The complete shutdown of the platform seems imminent, leaving investors, creditors, and former employees facing significant losses. The Kenyan e-commerce market will also feel the impact, losing a major player and its contribution to the sector’s growth.
