Kenya's iProcure files for bankruptcy amid financial struggles

STARTUP VENTURE CAPITALMay 12, 2024 at 4:58 PM UTC

TLDR

Kenyan agritech startup iProcure filed for bankruptcy on April 26 due to financial challenges and inability to secure additional capital.
Co-founder confirmed financial difficulties and debt obligations leading to bankruptcy protection despite a previous funding round of $17.2 million.
iProcure reportedly under administration as of April 26, 2024, owing debts that may exceed $1.5 million.

Kenyan agritech startup iProcure, which facilitates connections between agricultural product distributors and manufacturers, filed for bankruptcy on April 26. Despite efforts to secure additional capital from existing and new investors, the company was unable to avert financial challenges.

Stefano Carcoforo, iProcure's co-founder and director, confirmed to a Kenyan court that the company required bankruptcy protection due to its financial difficulties and inability to meet debt obligations. This development follows a previous funding round where iProcure raised $17.2 million.

While Carcoforo did not disclose the company's exact liabilities, reports suggest that its debts may exceed $1.5 million. As of April 26, 2024, iProcure has reportedly been under administration due to its failure to settle outstanding debts with creditors.

Key Takeaways

iProcure was established in 2013 by Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi to assist distributors of agricultural inputs, such as fertilizers, in sourcing products directly from manufacturers. The recent challenges faced by the startup shed light on the broader difficulties encountered by African tech startups that initially secured capital from investors based on promises of rapid growth but have struggled to achieve profitability.

iProcure

Agritech

Kenya

Startups

Bankruptcy

Venture Capital

Venture Funding