Kenyan agritech iProcure under administration over debt woes
TLDR
- iProcure, a Kenyan agritech firm connecting distributors and manufacturers, placed under administration on April 26, 2024, due to financial challenges.
- KPMG's advisory division appointed by the court to manage iProcure and lead recovery efforts to save the startup.
- Liquidation, as a final option, may be pursued to settle debts if recovery attempts do not succeed.
iProcure, an agritech firm headquartered in Kenya that connects distributors of agricultural products and manufacturers, has been placed under administration effective April 26, 2024, due to inability to meet its financial obligations to creditors.
To address the situation, the court has appointed the advisory division of KPMG to assume control of iProcure and oversee its management, aiming to rescue the startup.
However, if these recovery efforts fail to yield the desired outcome, the next course of action would be to consider liquidating the company. Liquidation is considered a last resort and would be pursued to facilitate the repayment of debts owed to creditors.
Key Takeaways
Since its inception, the agritech startup has successfully raised a total of $17.2 million from investors across five different funding rounds, aimed at enhancing its service offerings and expanding its presence across East African markets. A notable milestone was the Series B funding round and conventional debt financing in August 2022, which secured $10.2 million, primarily intended to facilitate expansion into Tanzania. Additionally, in March 2023, the startup received $1.2 million in funding from the United States Agency for International Development (USAID) as part of a $5.1 million grant allocated to seven agriculture firms in Kenya to bolster food production efforts. Despite these significant fundraising endeavors, the reasons behind the company's current financial difficulties and imminent collapse remain unclear. Additionally, details regarding the extent of its indebtedness to creditors and the factors contributing to its financial instability are yet to be disclosed.
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