Kenya-based e-commerce and fintech hub Copia Global has enlisted John Lazar, the former CEO of Microsoft subsidiary Metaswitch, to its board following a successful injection of $20m funding. Enza Capital, LGT, Goodwell Investments, and others played significant roles in the Series C extension round.
Copia Global, dedicated to serving the needs of middle- and low-income consumers in Africa, particularly in rural areas, strives to provide access to a diverse range of goods and services, addressing the challenges of choice, pricing, and reliability faced by these demographics.
Read More: Copia pauses Uganda operations due to economic challenges
Copia Global’s recent run
In 2021, the company shut down its operations in Uganda and said its decision was consistent with those of 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,” the company statement read.
When Copia set up shop in Uganda, Tracey Turner, Copia Global founder and chair described the move as “ the next step” in fulfilling the company’s mission to reach Africa’s emerging middle class.
“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 had said.
Providing clarification about the decision to leave Uganda, CEO Tim Steel said it was the right move for Copia given the market environment.
On January 18, the company raised $50 million in a Series C equity round led by Goodwell Investments. The round came three years after Copia’s Series B round of $26 million. Before that, the company had raised a total of $33.5 million in Series A and B funding. But including its Series C, Copia’s total funding since inception in 2013 till January 2022 stands at $83.5 million.
The company said in a statement that it harnesses mobile technologies, a network of local agents, and proprietary Copia Logistics to reach a market that traditional retail and Western e-commerce models cannot.
Consumer spending in Africa is projected to reach over $2 trillion in the next two years, according to the International Monetary Fund IMF. The continent’s middle class is the primary driver of this growth. However, their shopping needs are not adequately served because of the high logistics costs that make Western-style e-commerce companies such as Jumia operate unprofitably. The African e-commerce giant has not turned a profit since going public as its losses continue to increase.
Read More: More layoffs hit Copia
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