iProcure, the Kenyan agritech startup supported by Safaricom’s Spark Fund, has entered administration due to outstanding debts. KPMG’s advisory division has been tasked with administering the company, aiming to restore its financial health. If these efforts fail, liquidation may be pursued to ensure creditors can recover their funds.
Established in 2013 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure facilitates agricultural input distributors in sourcing products such as fertilisers directly from manufacturers. The Nairobi-based firm successfully secured $17.2 million from investors to enhance its technological infrastructure and drive expansion initiatives.
Makenzi Muthusi, appointed by KPMG as the administrator, will oversee the company’s offices, assets, and operations while handling claims from undisclosed creditors.
In a notice, KPMG stated, “With this appointment, the Administrator is now responsible for all matters concerning the company’s business, properties, and affairs. The company’s directors no longer have any authority to handle these matters.”
KPMG has called for any party with a claim against the company to submit it in writing, along with supporting documentation, to the Administrator by 14th May 2024 for review.
Since 2021, at least 10 Kenyan startups, including Notify Logistics, WeFarm, and Kune, have ceased operations due to worsening macroeconomic conditions and a funding shortage affecting tech firms across Africa.
According to the Mozilla Foundation, startups in the agriculture and logistics sectors face significant challenges in achieving product-market fit due to over-regulation of products, inputs, and equipment in most African countries.
“The common challenges faced by agritech startups include adoption and awareness, connectivity and infrastructure, data quality and integration, and regulatory and policy environment where compliance with agricultural regulations, policies, and environmental standards,” Mozilla Foundation said in a report released in February 2024.
