Kenya’s MarketForce pivots from B2B model to social commerce
TLDR
- Kenyan retail-tech company MarketForce shuts down B2B e-commerce platform RejaReja due to global funding challenges.
- MarketForce pivots to Chpter, a social commerce solution specializing in AI-powered chat automation tools for businesses on WhatsApp and Instagram.
- Founders Tesh Mbaabu and Mesongo Sibuti navigate challenges by transitioning to social commerce with Chpter amid scaling difficulties.
Kenyan retail-tech company MarketForce has made the decision to shut down its B2B e-commerce platform RejaReja due to challenges in scaling, exacerbated by the global "funding winter".
Founded in 2018 by Tesh Mbaabu and Mesongo Sibuti, MarketForce initially focused on sales force automation software before transitioning to RejaReja, a B2B retail marketplace catering to informal merchants in Africa.
However, faced with difficulties in scaling the platform amid global economic conditions impacting fundraising efforts, MarketForce has opted to pivot to a new joint venture called Chpter, a social commerce solution. Chpter specializes in AI-powered chat automation tools for businesses operating on platforms such as WhatsApp and Instagram.
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.
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