Founded in 2013, the Kenyan B2C e-commerce startup Copia Global is closing its doors, liquidating assets, and paying creditors.
The e-commerce platform which allowed customers in rural and peri-urban areas to order household products like toiletries, cooking oil, and sugar, has opted to abandon any hope of reviving the business.
To pay its creditors, Copia Global will lay off all its employees, and sell all properties.
“It was anticipated that Copia’s business will be maintained as a going concern, albeit with significantly reduced operations to attract the much needed through a new company to enable business continuity. However, this has regrettably not been successful, and it is apparent that the company’s options are limited to the third objective of the administration as provided for in the Insolvency Act of 2015: realization of assets to settle creditors’ claims.
Makenzi Muthusi, Copia’s Administrator.
Following the news, employees will receive severance packages on the 4th of July, 2024. Also, Copia Global has called its creditors for a meeting on July 14 to process their respective claims.
After its creation in 2013 by Jonathan Lewis and Tracey Turner, Copia began talks with potential investors in June 2024. Unfortunately, those talks were unsuccessful as the company didn’t get the investment required for growth.
According to an inside source, Copia struggled to make payroll as it was spending more than it was earning. In light of this development, the company appointed Julius Ngonga and Makenzi Muthusi of KPMG as administrators in May 2024.
Just one month after appointing the administrators, Copia laid off 10,60 employees in an attempt to reduce its overhead cost until it raised funds and ensured its survival. Unfortunately, according to the company, it is already too late, and dissolving the company is the only available option.
That being said, 2024 has been a rough year for B2B e-commerce companies as it has been a hassle to raise new funding because of the worsening macroeconomic conditions affecting Africa.