Copia Kenya, an e-commerce/fintech platform for mass market consumers in Kenya, has announced a significant restructuring of the business.
Consequently, the company has hired Makenzi Muthusi and Julius Ngonga of KPMG to lead an administration process whose main objective is to maintain the company as a going concern.
“Copia Global, the parent company of Copia Kenya, was unable to attract capital on terms that were amenable to all existing stakeholders, funders, and investors. Copia Global is now winding down, leaving the Copia Kenya business in a new position to raise capital directly,” Copia said in a statement.
The Administrator will collaborate with management to raise capital from new investors for the Kenya business. Over the past two years, the capital markets environment has been challenging, with a substantial decrease in investment flowing into Kenya and Africa causing many startups to close shop.
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“Under the mandate of the Administrator, the Copia Kenya management team will implement a plan with a lower burn rate, an accelerated path to profitability and a focus on the increasingly digital consumer,” said Copia.
The company will look to transition all aspects of its operations to digital – from the customer interface to agent communications to fulfillment.
While preserving jobs is a primary objective during administration, a staff retrenchment will likely be necessary soon to align Copia with the new digital opportunities and position the company for growth.
According to local reports, the restructuring could lead to the elimination of approximately 1,060 roles and pay cuts for those who are lucky to stay on.
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