Grace Ashiru
iProcure, the Kenyan agritech startup backed by Safaricom’s Spark Fund, is currently under administration after being unable to settle undisclosed debts. KPMG’s advisory division has been appointed as the administrator, tasked with reviving the company. Should these efforts prove unsuccessful, liquidation will be considered as a final measure to ensure creditors can recover their funds.
Founded in 2013 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure assists agricultural input distributors in sourcing products such as fertilizers directly from manufacturers. The Nairobi-based company successfully raised $17.2 million from investors to bolster its technological infrastructure and drive expansion efforts.
Makenzi Muthusi, the administrator appointed by KPMG, will oversee the company’s offices, assets, and operations while managing claims from undisclosed creditors.
In a notice, KPMG stated, “With this appointment, the Administrator is now responsible for all matters concerning the company’s business, properties, and affairs. The company’s directors no longer have any authority to handle these matters.”
KPMG requested that any party with a claim against the company submit it in writing, along with supporting documentation, to the Administrator by May 14, 2024, for consideration.
iProcure has not yet responded to a request for comment.
Muthusi, the court-appointed administrator, was unavailable to provide comments. At least 10 Kenya-based startups, including Notify Logistics, WeFarm and Kune, have shut down since 2021 because of worsening macroeconomic conditions and a funding winter that has hit tech firms across Africa.
According to the Mozilla Foundation, startups in the agriculture and logistics sectors struggle the most to get the right product-market fit amid over-regulation of products, inputs, and equipment in most African countries.
“The common challenges faced by agritech startups include adoption and awareness, connectivity and infrastructure, data quality and integration, and regulatory and policy environment where compliance with agricultural regulations, policies, and environmental standards,” Mozilla Foundation said in a report released in February 2024.
