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Image Credits:MarketForce / Mesongo Sibuti and Tesh Mbaabu, MarketForce co-founders (L-R)
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Image Credits:MarketForce / Mesongo Sibuti and Tesh Mbaabu, MarketForce co-founders (L-R)
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Kenyan B2B e - commerce companyMarketForcehas shut down operations in three of its five markets in Africa and is in the early stage of launching a social commerce spinout .
TechCrunch has learn that MarketForce ’s super - app dub RejaReja , which enable intimate retailers ( mom - and - pop store ) to order tight moving consumer goods ( FMCGs ) directly from distributer and manufacturer and approach financing , will only be available in Uganda after the caller break the offer in Kenya , Nigeria , Rwanda and Tanzania .
However , Kenya will continue to serve as the troupe ’s main office and a launchpad for Chpter , a societal commerce spinout that MarketForce has been building to enable merchants to “ change by reversal conversations on their societal media channel into more sale , ” Tesh Mbaabu , who will double up up as MarketForce and Chpter cobalt - founder and CEO , told TechCrunch while confirm the changes .
MarketForce ’s slowing take off last year when some VCs renege on their Series A funding consignment , forcing the company to scale down operations and conduct multiple rounds of layoff . The John Cash crunch came amidst the global venture cap downtime that has made raising financial support firmly .
MarketForce tightens its whang as tough time hit B2B commerce
The Johnny Cash crunch and current market realities have draw companies like MarketForce to give up growth - at - all - price and instead prosecute way of life to gainfulness , push for span cycle or lift funding at lower valuations . MarketForce recently kick upstairs $ 1 million through crowdfunding .
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Mbaabu allege in an early conversation with TechCrunch that his party is refocusing its imagination to construct a profitable business by delivering in areas with a impregnable need density , and shutting down road that are not profitable . However , with their asset - lowering poser being capital intensive and having to contend with mounting financial obligation , the company ran out of options and decided to close up shop in the three markets .
“ After we decided to move towards a path to lucrativeness , Uganda has been our best performing market . We have exclusive distributor contracts with four major manufacturer , and margins are better , enable us to draw a gross profitable procedure there ; that is why we will keep it participating , ” enunciate Mbaabu .
The RejaReja retail marketplace was launch in 2020 as a inspiration of MarketForce , and as a SaaS product for schematic market . It enable loose traders or mom - and - soda water shops to place goods directly from manufacturer and distributors for next - day saving . It also gives them access to funding based on the account of their transactions . The party was trying to solve challenges that these retailers face like stockouts , net imbalance and lack of funding to surmount their trade .
However , while MarketForce contrive to wiretap the intimate retail sphere in the continent , which accounts for about 80 % of menage patronage in sub - Saharan Africa , Mbaabu says they have been forced to scale down as margins are low in markets like Kenya and Nigeria , which are expensive to swear out , and where rival is stiffer .
“ We are figure out more profitable and in high spirits leeway segments and that is why we decided to make a move into societal mercantilism , ” said Mbaabu .
Sukhiba eyes expansion to magnate WhatsApp conversational commerce in Africa
