Kenyan Tech Giant Marketforce Faces Layoffs Amid VC Cooling
Introduction
Kenya’s leading retail B2B platform, Marketforce, has recently announced significant restructuring measures. The company, which operates the popular e-commerce platform RejaReja, is undergoing major changes as global venture capital (VC) activity slows down.
Background of Marketforce
Marketforce was established in 2016 and specializes in providing B2B retail solutions to small businesses across East Africa. Its platform offers end-to-end supply chain management tools, making it a key player in the region’s tech ecosystem.
Restructuring and Layoffs
The company has announced plans to reduce its workforce by over 50% as part of strategic restructuring. This move follows the completion of its recent funding round, which raised $2 million from investors including V8 Capital Partners. The layoffs are part of a broader effort to streamline operations and focus on core competencies.
Impact on Employees
Employees have been informed about the layoff process through internal emails, with a clear timeline for exit interviews and termination letters. Many have expressed concerns over redundancy claims made by CEO Charles Kene-Okafor, who emphasized the need for humane layoffs while prioritizing company interests.
Marketforce’s Strategy Post-Layoffs
The restructuring is part of Marketforce’s long-term strategy to solidify its position in Kenya’s competitive retail market. The company aims to enhance its product offerings and operational efficiency as it prepares for growth over the next two years.
VC Trends in Africa
As global VC activity slows, African startups are beginning to feel the impact. Companies like Sendylayoff, based in Nairobi, have already announced similar restructuring measures. This trend is further evident from recent fundraising activities in the region, with notable inflows of capital signaling a potentially brighter future despite ongoing economic challenges.
Marketforce’s Future
The company remains focused on its core business—enhancing its B2B retail platform to become Kenya’s leading supply chain solution. With plans to expand into other sectors and international markets, Marketforce is well-positioned to capitalize on the region’s growing tech ecosystem.
Conclusion
Marketforce’s strategic restructuring in response to VC cooling and global economic trends marks a significant turning point for the company. While the layoff strategy has sparked concern among employees, its long-term vision suggests potential growth opportunities in an evolving market landscape.
