MarketForce, a Kenyan B2B e-commerce company that aimed to revolutionize how informal retailers stocked their shelves, is shutting down RejaReja. This decision comes after a challenging two-year period marked by aggressive expansion attempts and a harsh economic climate.
Launched in 2020, RejaReja aimed to empower informal merchants, often referred to as “mom-and-pop stores,” by connecting them directly with distributors and manufacturers of fast-moving consumer goods (FMCGs). This innovative platform promised to address common pain points for these small businesses, such as stockouts and limited access to financing.
At its height, RejaReja boasted a significant presence, employing over 800 people and serving a network of 270,000 informal merchants. The company had also secured a substantial amount of funding, including a $40 million debt-equity round in 2022, which valued MarketForce at over $100 million.
However, MarketForce’s ambitious growth strategy proved unsustainable. The B2B FMCG market, characterized by wafer-thin margins and fierce price competition, presented a harsh reality. Also, a funding crunch materialized when an investor reneged on their commitment, further straining the company’s resources.
The RejaReja business model became difficult to maintain for several reasons; Razor-thin margins in the FMCG market made profitability a constant struggle and the highly competitive nature of the sector, with frequent price wars, further exacerbated the situation.
Tesh Mbaabu, MarketForce co-founder.
Mbaabu elaborated, stating, “We explored various avenues to ensure RejaReja’s sustainability, including scaling back operations. Unfortunately, after considerable effort, we had to make the difficult decision to shut down the platform.”
What just happened with MarketForce reflects a broader trend within African B2B e-commerce, where several companies have been forced to downsize due to persistent funding challenges.
Despite RejaReja’s closure, MarketForce isn’t throwing in the towel. The company is planning to focus on social commerce with the launch of Chpter. This new venture, described by Mbaabu as an AI-powered conversational commerce platform, empowers merchants to leverage social media giants like WhatsApp and Instagram to boost sales.
