A Setback for iProcure

iProcure, a prominent Kenyan agritech startup, has been placed under administration due to unresolved debts, marking a significant setback for the company and its stakeholders.

A Move Towards Revival

KPMG’s advisory arm has been appointed as the administrator tasked with the responsibility of revitalizing iProcure. Should efforts to revive the company prove futile, liquidation will be considered to ensure creditors can recover their funds.

Founding and Funding: iProcure’s Journey

Founded in 2013 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure aimed to facilitate the sourcing of agricultural inputs for distributors. With significant backing from investors, including Safaricom’s Spark Fund, the Nairobi-based startup raised $17.2 million to fuel its expansion and technological advancements.

Administrative Control and Claim Management

Makenzi Muthusi, appointed by KPMG as the administrator, will assume control over iProcure’s offices, assets, and operations. Additionally, Muthusi will oversee the handling of claims from undisclosed creditors, ensuring a structured approach to debt resolution.

The Road Ahead: Challenges and Responses

Despite the appointment of the administrator, iProcure remains silent on the matter, refraining from immediate comments. Meanwhile, the court-appointed administrator, Muthusi, remains unavailable for further clarification.

iProcure’s predicament adds to a growing list of Kenya-based startups facing closure, attributed to challenging macroeconomic conditions and a funding crunch affecting tech enterprises across Africa. Startups operating in the agriculture and logistics sectors are particularly vulnerable, struggling to find the right product-market fit amidst regulatory hurdles and infrastructure limitations.

Insights from Mozilla Foundation

According to the Mozilla Foundation, agritech startups encounter numerous challenges, including adoption barriers, connectivity issues, data integration complexities, and regulatory compliance issues. Over-regulation of agricultural products and inputs further exacerbates the situation, hindering innovation and growth in the sector.

As iProcure navigates through its current challenges, its fate underscores the broader struggles faced by agritech startups in Africa. With regulatory barriers and economic uncertainties looming large, the road ahead remains challenging for entrepreneurs seeking to drive innovation and transformation in the agriculture sector.