Kenyan eCommerce platform, Copia Global, has announced that it would be suspending its operations in Uganda.
Copia also says it’s suspending its operations in Uganda and expansions into Africa due to the “economic downturn and constrained capital markets.” It will now focus on growing its Kenyan operation into a profitable company.
Copia has reportedly been growing in recent years, and the closure of its Uganda market supposedly comes as a surprise to those who know how the platform works.
Copia targets low-income African consumers. Before it launched in Uganda in 2021, the company raised a substantial amount of funds to accelerate its expansion plans.
Following its launch, the startup also raised $50 million in a Series C round led by Goodwell Investments in January 2022.
With these funds, it would be logical to assume that Copia was well-positioned to extend its services to more African countries. But that isn’t the case.
The decision to pause its operations in Uganda and focus more on Kenya will affect over 350 employees. The company says affected staff have received a severance package.
Launched in Kenya in 2013, Copia penetrates markets that conventional retail and Western eCommerce models can’t reach via Copia Logistics, a network of local agents, and mobile technologies.