Kenyan e-commerce platform Copia has let go of all its remaining 1,500 employees. Tomorrow, it expected that all remaining staff will get their termination letters. Following financial difficulties, Copia recently announced it is entering administration. The startup has gone through a series of layoffs including recently cutting 25 percent of its workforce in Kenya. This was after closing its short-lived operations in Uganda last April.
Founded in 2012, Copia Global has in 8 rounds of funding raised $123 million. However, it has recently struggled to stay afloat citing challenges to raise capital. Ultimately, the company announced at the end of May that it was entering into administration. The firm hired Makenzi Muthusi and Julius Ngonga of consultancy firm KPMG to lead the administration process.
Soo after, in a notice to staff, the company announced it ceasing operations in Eldoret, Meru, Embu, Kericho, Eldoret, Machakos, and Naivasha. At the time, the firm disclosed that the employees in the listed towns would proceed on leave until further notice.
“We regret that we have to stop serving these locations at this time as we resize and reshape the business and we expect that we will in the future return to these areas,” wrote Anne Mwihaki, Copia Director of Human Resource, in an email.
Makenzi Muthusi, a Copia administrator explained that while the company had funds for May salaries, there were administrative issues with bank accounts that caused a delay in disbursement. Under the guidance of the administrator, Copia hopes to execute a a plan with a lower burn rate and to chart a path to profitability. With no employees, Copia’s end appears to be looming.
