Grace Ashiru
Copia Global, the Kenyan B2C e-commerce startup that entered administration on May 24, has decided to cease efforts to revive its business. Instead, it will liquidate its assets to pay creditors, according to an internal memo obtained by TechCabal. This liquidation signifies the end of the e-commerce platform that provided customers in rural and peri-urban areas with the ability to order household goods such as sugar, cooking oil, and toiletries.
The company plans to lay off all employees and sell assets, including delivery trucks, warehouses, and office equipment, to raise the necessary funds to settle debts with creditors.
“It was anticipated that Copia’s business would continue as a going concern, albeit with significantly reduced operations, to attract the much-needed investment through a new company to enable business continuity,” stated Copia’s administrator in an email to staff.
The company has regrettably not succeeded in its efforts, leaving it with the third objective under the Insolvency Act of 2015: the realization of assets to settle creditors’ claims.
According to a memo from the company administrators, employees will receive severance packages on July 4. Additionally, the company has scheduled a meeting with its creditors on July 14 to discuss their respective claims.
Makenzi Muthusi, Copia’s administrator, did not immediately respond to a request for comments.
Founded by Tracey Turner and Jonathan Lewis in 2013, Copia, currently facing financial difficulties, began talks with potential investors in June 2024. However, according to a source with direct knowledge of the situation, these discussions were ultimately unsuccessful.
In May 2024, Makenzi Muthusi and Julius Ngonga from KPMG were appointed as administrators by the company, responding to financial challenges that jeopardized payroll. Subsequently, 1,060 employees were laid off in an effort to reduce overhead costs and sustain operations until additional funding could be secured. Copia’s liquidation adds to a challenging year for B2B e-commerce firms, struggling amid tightening macroeconomic conditions across the continent.
