Copia Global, the parent company of Copia Kenya, has entered administration after failing to secure new funding. This development comes just a week after k47 digital news reported that the company was considering shutting down.
Makenzi Muthusi and Julius Ngonga from KPMG, an audit and advisory firm, have been appointed to manage the administration process, according to a statement obtained by the k47 digital news team.
Copia Global, which raised $123 million across eight funding rounds, has been unable to attract capital on terms agreeable to all stakeholders, funders, and investors. As a result, the company is winding down operations, placing over 1,000 jobs at risk. The administrator’s primary task will be to secure funding for Copia’s Kenyan unit, aiming to stabilize and potentially grow the business.
The company has announced layoffs, though the exact number of affected employees remains unspecified. However, CEO Tim Steel had previously informed employees that over 1,000 staff could be laid off.
Additionally, Copia Kenya will halt physical order processing and transition to an online fulfillment model via its mobile app, as part of a broader cost-cutting strategy. This move is intended to lower the company’s burn rate, accelerate its path to profitability, and cater to an increasingly digital consumer base.
Founded in 2013 by Tracey Turner and Jonathan Lewis, Copia aimed to provide customers in remote areas with the ability to order goods through its platform, which were then delivered via a network of agents.
Despite its early success, including a peak workforce of 1,800 employees and a network of 50,000 agents in Kenya and Uganda, Copia began to show signs of financial strain in 2023.
In July 2023, Copia significantly cut its operations, laying off 350 staff members. Earlier that year, the company had already reduced its headcount by 50 employees as part of a cost-cutting drive aimed at achieving profitability.
Furthermore, Copia closed its operations in Uganda, less than two years after entering the market, and scaled back its ambitious expansion plans that included ventures into Nigeria, Ghana, South Africa, and Mozambique.
Copia’s shutdown adds it to the list of well-funded Kenyan ventures that have failed to secure fresh capital, such as Wefarm and Zumi. Other companies like Sendy and iProcure are currently under administration, while Twiga Foods and Marketforce are struggling to attract new investors.
The closure marks a significant setback for Tim Steel, who took over as CEO from co-founder Tracy Turner in 2017. Steel had expressed a deep commitment to turning Copia into a billion-dollar company, despite the challenges faced. In a 2023 interview with Business Daily, he highlighted his fear of not succeeding with Copia and the substantial personal investment he had made in the company.
The future of Copia Kenya now hinges on the administrator’s ability to attract new investment and implement a sustainable business model in a highly competitive market.
