Copia Poised To Overtake Jumia In Kenya

Many of these Kenyan startups are actually 100% mzungu owned where they collect investment cash from their fellow whites back at home yet the companies make losses here… You will be shocked to find out that Cheki, buyrentkenya, brightermonday, pigiame and a few other e-commerce sites are owned by one mzungu company and that they possibly have never broken even. Yaani the investment was around 15b KES and am very sure that they have never collected even half this amount from the time they started.

…and it is extremely hard to compete with them .They have literally captured the market and at the same time they are not making money .

Yeah… These are conmen who gather capital at home to invest in undeveloped Africa… Their objective is the IPO cash back home… And indeed they always have a strong business case… But they do not make profits here… Very hard to beat them

Many startups in the US are also the same they dont make any profits

Actually I read somewhere that the giant Amazon has never declared profits… the same disease/ model being propagated to apps in Africa by the same American investors…

You declare “losses” year after year to avoid paying taxes. Works like magic. Otherwise how do you manage to operate for years without a profit?

What if you have lots of seed capital from investors abroad and ensure that you spend more than you make? And continue utilizing these investor funds to continue operating at a loss?