B2B e-commerce platform Marketforce has downscaled operations in three of its five markets and is currently exploring other business models.
The five year old startup was previously present in Kenya, Nigeria, Uganda, Tanzania and Rwanda. It had also planned to expand to Ethiopia and Ghana through a partnership with Cellulant.
“Marketforce has downscaled operations in other markets and is now just operational in Kenya and Uganda,” CEO and co-Founder Tesh Mbaabu told The Kenyan WallStreet on Friday.
Since it was established in 2018 by Tesh Mbaabu and Mesongo Sibuti, Marketforce grew fast on the back of venture capital funding attracted to its asset-light business model. The company raised US $40 million in Series A funding in February 2022; two months ago, the company launched a community fundraising round aimed at raising US$ 1 million.
The company main product is a B2B commerce and fintech platform named “RejaReja.” On its website, it says it has processed transactions worth more than US $500 million and mapped out more than 250, 000+ retail outlets.
News of downscaling comes in the midst of similar news from other startups, as venture capital funding dries, forcing players in Africa’s tech ecosystem to rethink their business models. Some companies, such as Kenya’s Sendy and Ghana’s Dash have completely shut down operations in the past few months..
Mbaabu says that Marketforce is “exploring other high margin opportunities in adjacent verticals, such as social commerce.”