Nigerian B2B marketplace startup Sabi has announced a strategic shift in its business model, accompanied by a workforce reduction affecting approximately 20% of its employees—around 50 team members. The move comes as the company pivots from its broader informal trade marketplace model to a more focused approach centered on commodity exports and traceability.
Founded in 2020, Sabi has been a key player in digitizing Africa’s vast informal trade sector. The platform connects merchants and resellers with tools and services designed to enhance customer reach, improve cash flow, and streamline logistics. By 2023, the company had raised $38 million in Series B funding and reported over 300,000 merchants on its platform, with an annualized Gross Merchandise Value (GMV) of $1 billion.
However, like many startups in the African B2B e-commerce space, Sabi has faced mounting challenges in scaling sustainably. In response, the company is now doubling down on a high-growth segment: traceable, ethically sourced commodity exports. This pivot is anchored by TRACE (Technology Rails for African Commodity Exchange), a platform launched in 2024 to meet the growing global demand for transparent and responsible sourcing from Africa.
The company said in a statement:
Sabi is entering its next chapter, with a focused commitment to commodity trade and traceability for global customers. We’re doubling down on the part of our business seeing the most demand, built on the strong foundation we’ve laid since 2021 by supporting African merchants and their growth.
This was not an easy call. We are deeply grateful to our departing teammates – their work was instrumental to our journey, and we’re proud of everything we’ve built together. Sabi’s people are among the best in the market, and any company would be lucky to have them.
To align with this new direction, Sabi made what it described as a “difficult decision” to restructure parts of its organization. The company emphasized that the layoffs were not a reflection of individual performance but a necessary step to ensure long-term focus and sustainability.
Despite the restructuring, Sabi reaffirmed its commitment to its core mission: transforming how the world sources from Africa. The company believes that by narrowing its focus, it can build scalable, responsible supply chains that benefit both African producers and global buyers.
