copia global

Copia Global, a prominent B2C e-commerce company in Kenya, has officially ceased its attempts to salvage operations and is proceeding with asset liquidation. The company will offer severance packages to its workforce and settle debts with creditors. This decision marks the end of Copia Global’s business activities, leading to staff dismissals and the sale of assets, including delivery vehicles, storage facilities, and office furnishings.

Techcabal reported that in a communication to employees, the administrator of Copia Global disclosed that there were initial hopes to downsize and maintain minimal operations, aiming for a potential future rebound. However, the message conveyed to the staff was disheartening, acknowledging that efforts to sustain the business had failed. It became evident that the only viable option was to follow the third directive outlined in the Insolvency Act of 2015, which involves liquidating assets to address creditors’ claims.

Employees have been informed that they will receive their severance packages on July 4th, and a meeting with creditors is scheduled for July 14th to discuss the settlement of their claims. This resolution follows nearly a month after Copia Global’s action in May 2024, where the company terminated its entire workforce of 1,500 employees, following an earlier reduction of 1,000 positions.

In May, Copia Global was placed into administration due to its inability to secure additional funding on acceptable terms. Makenzi Muthusi and Julius Ngonga from KPMG were appointed as administrators to oversee the process. Consequently, Copia suspended operations in six Kenyan markets located in the central and eastern regions of the country and placed the employees from these areas on leave.

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Copia had previously expanded into Uganda in July 2021. However, after two years of operations, the company suspended its activities there and halted further expansion plans across Africa. The decision to retract and concentrate on the Kenyan market was attributed to the economic downturn and tightening capital markets.

The move to lay off staff and enter administration came despite Copia’s success in raising significant funds. In December 2023, the company raised a $20 million Series C extension round with contributions from investors such as Enza Capital, Goodwell Investments, the International Development Finance Corporation (DFC), and the Sorenson Foundation. Earlier, in January 2022, Copia Global had secured $50 million in a Series C funding round.

In addition to these capital injections, Copia had formed a five-year partnership with Visa. This collaboration was intended to offer users a digital wallet that combined financial services with their online shopping experience, further integrating Copia’s e-commerce platform with digital payment solutions.

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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