A memorandum dated May 16th from the e-commerce platform Copia Kenya to all employees has disclosed that the company is planning to reorganize its activities by either laying off employees or potentially shutting down entirely due to ongoing financial difficulties.
The memo states that the decision was reached following a meeting held on May 15th.
Copia has given a one-month notice to inform employees in positions that will soon become unnecessary.
Despite Copia’s assertion that it aims to explore other sources of income to sustain its operations, its financial challenges make it vulnerable to imminent failure.
“Despite our best efforts to navigate this challenge, we find ourselves in a position where we must consider a far-reaching organizational re-structuring to ensure the sustainability of our operations,” the memo stated.
Copia was founded in 2013 by Tracey Turner and Jonathan Lewis, who had individually built and sold social impact finch companies in Sillicon Valley in the early 2000s.
Since that period, the e-commerce startup had grown to become one of Kenya’s most promising enterprises – with a capital injection of more than US$ 100 million.
In its 2022 Series C funding, Copia received US$ 50 million. Last year, the company’s fortunes began to dwindle.
After exiting the Ugandan market in April 2023, Copia’s commitment to realign its strategies was scoffed at by the vulnerabilities of its business model. In July last year, Copia laid off a quarter of its staff – its future was ominous.
