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iProcure, Kenya’s agritech startup faces administration

iProcure, an agritech startup that secured significant funding, was placed under administration on April 26, according to a notice published in local newspapers on May 1st. KPMG’s advisory arm has been appointed as the administrator and will attempt to revive the company. If revival efforts fail, liquidation may be considered to ensure creditors recover their money.

Founded in 2013 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure aimed to assist distributors of agricultural inputs like fertilizers in sourcing products from manufacturers. The Nairobi-based firm raised $17.2 million from investors to expand and enhance its technology stack.

In August 2022, the company raised $10.2 million in Series B funding and conventional debt to fuel its expansion across East Africa. Following the appointment of the administrator, all affairs, business operations, and properties of the company are being managed by KPMG. The directors of the company no longer hold any authority in these matters.

Makenzi Muthusi, appointed by KPMG, will take control of the company’s offices, assets, and operations, and will also handle claims from other undisclosed creditors. Any party with a claim against the company is required to submit their claim, along with relevant documentation, to the administrator by May 14, 2024, for consideration.

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Despite raising over $17 million in five funding rounds, the reasons behind the company’s collapse remain unclear. A former employee, speaking anonymously, mentioned cash flow constraints and a high burn rate as contributing factors.

Niraj Varia, appointed as Group CEO in a management change in 2022, declined to comment beyond publicly available information, indicating his departure from iProcure.

Requests for comments from iProcure and the administrator, Makenzi Muthusi, went unanswered.

Techrectorywith Agency Report.

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