Grace Ashiru
Copia Global, the Kenya-based e-commerce and fintech hub, has welcomed John Lazar, former CEO of Microsoft subsidiary Metaswitch, to its board following a successful $20 million funding injection. Enza Capital, LGT, Goodwell Investments, and others played critical roles in the Series C extension round. Dedicated to serving middle- and low-income consumers in Africa, especially in rural areas, Copia Global aims to provide access to a diverse range of goods and services. The platform addresses challenges such as choice, pricing, and reliability faced by these demographics.
In 2021, Copia Global ceased its operations in Uganda, citing alignment with the strategic decisions of leading companies in Africa and globally. The company emphasized its responsiveness to the market dynamics and a commitment to prioritizing profitability amid ongoing economic challenges and constrained capital markets. In light of the prolonged economic downturn, Copia intends to intensify efforts toward achieving sustainable and scaled profitability for its core business in Kenya, as outlined in its official statement.
Copia Global founder and chair Tracey Turner characterized the establishment of Copia in Uganda as a pivotal advancement in realizing the company’s mission to connect with Africa’s burgeoning middle class. Turner emphasized Uganda’s rapid growth in the middle-class demographic, attributing it to a diligent workforce and a vibrant entrepreneurial spirit. According to Turner, Copia is strategically tailored to cater to this expanding yet underserved consumer base, offering them access to top-quality products at competitive prices.
CEO Tim Steel explained that the decision to exit Uganda was deemed appropriate for Copia, given the prevailing market conditions. The company recently secured $50 million in a Series C equity round on January 18, led by Goodwell Investments. This funding comes three years after Copia’s Series B round of $26 million. In total, including Series A and B, the company has raised $83.5 million from 2013 until January 2022.
The company’s official statement highlights its utilization of mobile technologies, a network of local agents, and its proprietary Copia Logistics to access a market that conventional retail and Western e-commerce models struggle to reach.
The International Monetary Fund (IMF) projections indicate that African consumer spending will exceed $2 trillion in the next two years, primarily driven by the continent’s expanding middle class. Despite this growth, the current inadequacy in serving their shopping needs is attributed to high logistics costs, rendering Western-style e-commerce companies like Jumia unprofitable. Notably, the African e-commerce giant has faced continuous losses since its public debut, raising questions about its profitability
