Copia Global has reportedly shut down its Ugandan B2C operations to prioritize profits due to the impact of unfavourable market conditions. The global economic turmoil has impacted the economic sphere where several technology-inclined companies are optioned to close shop. This has Copia Global added to the list of African technology companies faced with bankruptcy.
Copia Global offers Business-to-Customer, B2C, e-commerce services that leverage the gap between companies and low-income earners willing to purchase consumer goods. However. the Ugandan population will no longer have access to the e-commerce solutions — Copia has decided to let go of the affected market in exchange to preserve its least business capital.
Copia’s CEO Tim Steel has reported an official statement that confirms the Ugandan operations shut down in response to the bearish market ecosystem that led the B2C e-commerce company to shut down rather than retrench massive workforce like other technology companies that prioritizes profit has reportedly done.
The B2C e-commerce company decision is “consistent with many of the best companies in Africa and across the world which are responding to the market environment and prioritizing profit. Given the economic downturn and constrained capital markets are expected to continue for some time, Copia plans to double down on efforts to drive our founding Kenya business to sustainable, scaled profitability,’ Steel said.
Copia Global operations are yet up to two years in Uganda which denotes that the B2C e-commerce company’s working capital exceeds its revenue in flow. Recall that the Ugandan operations were established in 2021 under Tracy Turner’s administration as Copia’s chairman and founder. He had the sole intent to leverage the economic barrier involved with the middle class and the elite population of Uganda.
“Uganda has one of the fastest growing middle classes in the world with a hard-working population and a dynamic entrepreneurial culture. Copia is designed specifically to serve this high growth but underserved consumer base who want access to high-quality products at the best prices,” Turner shared comments per his intentions to transition the Ugandan middle-class population into elites which rub off on other low-income earners.
Steel’s comments depict his keenness not to relent on the minor setback faced with his company’s Pan-Africanism. He noted that he will use the leftover resources Copia Global Kenya has left in its capital reserve to “assure short-term profitability and long-term success.”
The Ugandan operations are on suspension until Copia Global bounces back with adequate business capital to lead its operations into profit. Roughly four hundred employees will be automatically retrenched as the B2C e-commerce solutions are unavailable to serve the Ugandan population at the moment.
The B2C e-commerce company had once raised a $50 million Series C deal last year – a short while after the Ugandan operations were established. At the time Copia’s net value skyrocketed and had acquired up to one hundred and thirty million dollars from seven different deals led by investors to lead Copia to expand globally.
Now the B2C e-commerce company earnings have plummeted per suspended operations in Uganda.