Kenyan B2C e-commerce startup Copia Global faces severe financial difficulties and has warned employees of potential job cuts and a complete shutdown. In a memo dated May 16 2024, the company stated it is exploring all avenues to secure additional funding but remains at risk of downsizing or ceasing operations entirely.
The memo revealed the necessity for drastic organizational restructuring to sustain operations. As per Kenyan labour laws, approximately 1,060 roles in Copia could be eliminated with affected employees given one month's notice. Copia's journey has been turbulent despite raising $107 million in funding across seven rounds.
Copia exited the Ugandan market in 2023 to focus on Kenya and laid off 25% of its workforce due to economic pressures. The current situation raises questions about Copia's operational strategies and adaptability to market changes. The company has launched efforts to boost sales via its mobile app, but the worsening financial conditions have led to more layoffs and a possible shutdown.
