Kenyan ecommerce company shuts down after spending 600million


nitarudia mara ya 67 90% of tech startups in kenya are washwash schemes. hawa wamenunua Tesla huko kwao sasa wanarudi

How many wazungus were on the board or management level?

You know Jumia has never turned a profit

100 Fails.
1 Win.
Thank God.

There was Kune Foods, Notify Logistics … There’s another one, big that’s on shaky ground

Mahns Kenya si ni place ngori kujaribu kitu? Ecosystem ni harsh kama surface ya Venus for an honest-to-Jesus vanilla model biz, hell any kind of by the books biz. Kenya probably inataka thuggish type operations in the grey to work out

I have written here before that Kenya doesn’t have the purchasing power to sustain technology companies let alone venture backed ones.
If you are not planning to go beyond our borders within year 2 of operations because of the glitzy headlines about how we are the Silicon Savannah and whatnot,the wrath of economic forces will put the fear of God in you.

If they spent 600m and I haven’t heard about it I doubt that they did any marketing.

What did they spend the 600 million on? Kuna barabara walikuwa wanajenga ama io pesa ilitumika kununua nini?

hizo billions of dollars zinaendanga ukraine ni kama zinapitianga hapa na hizi startups
hio sky garden nimeisikia
lakini sijawahi ona advert

They had a 2 billboard banner ad pale Muthaiga interchange about a month ago

Here is the management team behind it


siwezi mind kudownload na kuedit woo comerce nilipwe 800k per month

Arghhhh Skygarden was awesome!

Hehe! The main challenge for most so-called VC-funded startups is they want to fix Kenyan problems using first-world technology. They don’t do enough market due diligence to identify the pain points before they consider investing. We have some business basics like the supply chain e.g a producer/manufacturer=>distributor=>retailer=>consumer. You can’t make good money by following that chain unless you cut off either the distributor or retailer for you to reach the consumer. For eCommerce to make sense in Kenya, you have to make sure you source everything from the producer/manufacturer and sell directly to the consumer at a lower price compared to the retailer’s price. Doesn’t make sense to consumers to buy online what’s already in Tom Mboya street at the same price plus paying for delivery etc

Thats exactly why Twiga Foods successfully took off and is currently doing very well.They helped the retail grocery shops adopt tech so that they can be mapped as an outlet in the Twiga Foods data base.Once mapped they are able to place their orders online and are supplied by the truck servicing their route on a daily basis.The Twiga Foods back office guy collects the grocery ordrs everyday in the evening and the Trucks are sent to Wakulima Market everyday at 3am to buy the groceries which are then immediately dispactched from the market to the grocery retailers.
Twiga is an example of a start up that did proper market research about the distribution challenges of the Mama mboga and emerged victyoriuos in providing solutions while making a tidy profit at the same time.Among the founders is a Kenyan guy who used to do Route To Market in Cocacola across continents.His experience has proven valuable.

Clone Twiga in your hood!

Am doing that with electronics and phone accessories not only in Nairobi but KE as a whole!