A memo dated 16th May from e-commerce platform Copia Kenya to all its staff members has revealed that the company is about to restructure its operations by laying off staff or even shut down completely amidst “persisting financial challenges.”
- The notice indicates that the decision was made after a meeting held on Wednesday 15th May.
- The company has issued the one month notice to alert staff members in roles that will soon be made redundant.
- Although Copia has cited that it intends to find alternative revenue streams that would salvage its operations, its financial woes predispose it to imminent collapse.
“Despite our best efforts to navigate this challenge, we find ourselves in a position where we must consider a far-reaching organizational re-structuring to ensure the sustainability of our operations,” the memo stated.
Copia was founded in 2013 by Tracey Turner and Jonathan Lewis, who had individually built and sold social impact finch companies in Sillicon Valley in the early 2000s. Since that period, the e-commerce startup had grown to become one of Kenya’s most promising enterprises – with a capital injection of more than US$ 100 million.
In its 2022 Series C funding, Copia received US$ 50 million. Last year, the company’s fortunes began to dwindle.
After exiting the Ugandan market in April 2023, Copia’s commitment to realign its strategies was scoffed at by the vulnerabilities of its business model. In July last year, Copia laid off a quarter of its staff – its future was ominous.
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