Copia Global, a Kenyan B2C e-commerce company, has ceased its attempts to salvage its operations and is moving forward with asset liquidation, offering severance to its workforce, and settling debts with creditors. The decision to liquidate will result in the cessation of business activities, the dismissal of staff, and the sale of company assets, which include delivery vehicles, storage facilities, and office furnishings.
As disclosed in a communication to employees that TechCabal had access to, the administrator of Copia Global revealed that there were initial hopes to downsize and maintain minimal operations in the hopes of a future rebound. The message conveyed to the staff was disheartening, acknowledging that efforts to sustain the business had unfortunately failed. It became clear that the only viable path left was to follow the third directive outlined in the Insolvency Act of 2015, which involves the liquidation of assets to address the claims of creditors.
Employees have been informed that they will receive their severance packages on July 4th, while a meeting with creditors is scheduled for July 14th to discuss the settlement of their claims. This resolution arrives nearly a month subsequent to Copia Global’s action in May 2024, where the company terminated its entire workforce of 1,500 employees, following an earlier reduction of 1,000 positions.
In May, Copia Global, a Kenyan B2C e-commerce startup, was placed into administration due to its inability to secure additional funding on terms acceptable to all parties. Makenzi Muthusi and Julius Ngonga from KPMG were appointed as administrators to oversee the process.
Following this development, Copia suspended operations in six Kenyan markets located in central and eastern regions of the country and placed the employees from these areas on leave.
Copia had previously embarked on an expansion into Uganda in July 2021. However, after two years of operations, the company suspended its activities there and put a halt to further expansion plans across Africa. The decision to retract and concentrate on the Kenyan market was attributed to the economic downturn and tightening capital markets.
The move to lay off staff and enter administration came despite Copia’s success in raising significant funds. In December 2023, the company raised a $20 million Series C extension round with contributions from investors such as Enza Capital, Goodwell Investments, the International Development Finance Corporation (DFC), and the Sorenson Foundation. Earlier, in January 2022, Copia Global had secured $50 million in a Series C funding round.
In addition to these capital injections, Copia had formed a five-year partnership with Visa. This collaboration was intended to offer users a digital wallet that combined financial services with their online shopping experience, further integrating Copia’s e-commerce platform with digital payment solutions.
