Agritech startup iProcure, which raised millions of dollars in funding, was placed under administration on April 26, the administrator said in a notice published in local dailies on May 1st.
- •iProcure was founded a decade ago by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi and Bernard Maingi.
- •It connects suppliers and retailers in the agricultural sector, and provides both inventory management and credit facility services.
- •The firm raised $10.2mn (KSh 1.2bn at the exchange rate then) in Series B funding and conventional debt in August 2022 to fund its expansion across East Africa.
“Following the appointment, all the affairs and business and properties of the company are being managed by the administrator. The directors of the company no longer have any power or authority to deal with these matters,” firm’s administrator, Makenzi Muthusi of KPMG Advisory Services, said in the notice.
The company raised more than $17mn in five funding rounds, according to global startup data platform Tracxn. In May 2023, the startup received $1.2mn from the United States Agency for International Development (USAID) as part of grants worth $5.5 million to seven firms in the agricultural sector. The grants were meant to support food production.
While it was not immediately clear why the company collapsed, a former employee who requested anonymity told The Kenyan Wall Street that the startup has been struggling with cashflow constraints and a high burn rate, amidst other issues.
The firm appointed former Novastar Ventures partner Niraj Varia as Group CEO in a management change in 2022. “I left iProcure last year, so have no more information than is in the public domain,” Varia told The Kenyan Wall Street.
See Also: