Kenya’s MarketForce pivots from B2B model to social commerce

Key Takeaways

MarketForce encountered significant challenges when certain venture capital firms that had initially committed funds for a $40 million Series A debt-funding round backed out of the deal. This unexpected setback compelled the startup to seek new investors, presenting it with fundraising difficulties. Consequently, MarketForce was compelled to scale back its growth ambitions and downsize its operations. Faced with financial constraints and the prevailing market conditions that have compelled companies to shift away from a "growth-at-all-costs" approach, MarketForce strategically allocated its resources toward building a profitable business. The company's new focus involves meeting strong demand in areas with high density while discontinuing operations in regions that are not yielding profits. This shift in strategy aims to ensure the sustainability and profitability of the business. Meanwhile, its decision to enter social commerce points to a growing sub-sector with a $28 billion opportunity.