Topics
in vogue
AI
Amazon
Image Credits:MarketForce / Mesongo Sibuti and Tesh Mbaabu, MarketForce co-founders (L-R)
Apps
Biotech & Health
mood
Image Credits:MarketForce / Mesongo Sibuti and Tesh Mbaabu, MarketForce co-founders (L-R)
Cloud Computing
Commerce
Crypto
endeavor
EVs
Fintech
fund raise
Gadgets
bet on
Government & Policy
computer hardware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
security measure
Social
blank
Startups
TikTok
Transportation
Venture
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
TV
Partner Content
TechCrunch Brand Studio
Crunchboard
adjoin Us
Kenyan B2B e - commerce companyMarketForceis thread down its B2B e - commerce line of work that served informal merchants ( mom - and - pappa stock ) after a roily two - twelvemonth period that saw it descale down functioning gravely .
The shutdown of the B2B einsteinium - commerce branch dub RejaReja comes month afterMarketForce retreat the servicefrom all its markets , include Nigeria and Kenya , save for Uganda .
RejaReja was intended to enable informal retailers to place fast - moving consumer goods ( FMCGs ) from distributor and manufacturers , solve several challenges encountered by informal retailers such as stockout and financing . The marketplace , launched in 2020 , desire to bug the intimate retail sector in the continent , which accounts for about 80 % of home trade in sub - Saharan Africa .
At its tiptop , it engage more than 800 people and served 270,000 cozy merchants . MarketForce had raised $ 42.5 million , include $ 40 million debt - equity in a Series A round in 2022at over $ 100 million valuation , to fuel the business .
However , a intermixture of challenges — including strong-growing enlargement , a majuscule - intensive business mannequin , razor - lean profit tolerance and a funding crunchafter an investor reneged on their promise — made the byplay hard to sustain , leading to the closing . Several B2B tocopherol - commerce companies in Africahave also scaled back operation as the support crunch persists .
“ The B2B dispersion business that was RejaReja became unsustainable for a few reasons . Firstly , the retail FMCG market has razor - sparse margins , which means that at a whole level , we clamber with profitability . The section is also highly price elastic , which means the damage war are consistent,”saidTesh Mbaabu , who co - founded MarketForce in 2018 with Mesongo Sibuti .
“ After immense efforts to make our stage business model sustainable , including downsizing the byplay to carry the rail for as long as possible , we have resolve that it is no longer feasible to keep RejaReja operational . ”
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Its investors include Y Combinator ( YC S20 ) , V8 Capital Partners ( which led the Series A round ) , Ten13 VC , SOSV Select Fund , VU Venture Partners , Vastly Valuable Ventures , Uncovered Fund , Reflect Ventures , Greenhouse Capital , Century Oak Capital and Remapped Ventures .
After the last of RejaReja , MarketForce is launching Chpter , a social commerce spinout that Mbaabu describes as an AI - powered conversational DoC platform that enable merchant to betray on societal platforms .
What African B2B due east - commerce startup can learn from OmniRetail ’s profitable run
