Copia Global, a prominent Business to Consumer (B2C) e-commerce platform and the parent entity of Copia Kenya, has recently entered into administration, following reports of its impending shutdown. This development is occurring against the backdrop of Kenya's Insolvency Act of 2015, which guides the procedures for such circumstances.
The decision for administration typically arises when a company becomes unable to fulfill its financial obligations, prompting the appointment of a licensed insolvency practitioner to oversee proceedings. This may involve restructuring efforts to reach agreements with creditors or the liquidation of assets to settle debts. Presently, Makenzi Muthusi and Julius Ngonga from KPMG, an esteemed audit and advisory firm, are tasked with administering Copia Global.
Despite raising a substantial $123 million through eight funding rounds, Copia Global faced challenges in securing additional funding, leading to operational uncertainties and the risk of job losses exceeding 1,000 positions. With a decade-long history, the company now confronts imminent closure, largely due to financial constraints impeding its ability to sustain its workforce.
In a recent statement, Copia Global acknowledged its inability to attract capital on mutually acceptable terms for its stakeholders, funders, and investors. Consequently, the decision was made to wind down Copia Global while empowering Copia Kenya to pursue capital independently. Under the guidance of the appointed administrators, the management team in Kenya aims to implement strategies aimed at reducing expenditure, hastening profitability, and catering to the evolving needs of digital consumers.
During its peak, Copia Global boasted a workforce of 1,800 employees and maintained a network of 50,000 agents across Kenya and Uganda. Its current plight places it among a list of well-funded Kenyan ventures that have succumbed to financial pressures, including agritech startups like Kune and Wefarm, as well as the Business to Business (B2B) company Zumi. Additionally, other entities such as Sendy and iProcure find themselves under administration, while Twiga Foods and Marketforce continue to grapple with challenges, aspiring to restore investor confidence.
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