E-commerce platform Copia has announced it will be closing its operations in Uganda two years after launching in the country.
In a statement, Copia said the closure is part of its plans to halt its Africa expansion plans over the global economic downturn occasioned by Russia-Ukraine war.
“To accelerate Copia’s drive to profitability, the company is pausing its Africa expansion plans and suspending its recently established Uganda operation during this period. This 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,” reads a statement from Copia.
“This highly focused approach will ensure that Copia is well positioned to pursue its pan-African ambitions with its proven formula for successful expansion to serve the 800 million middle- and low-income consumers through the power of e-commerce,” Copia added.
It was not immediately clear how many of its workers have been affected by the closure.
However, this comes as a surprise given that Copia had in 2021 raised KES 2.6 billion in a Series B drive to expand its investments across the continent. In the same vein, the company appointed Betty Mwangi as a member of its board, Mwangi one time served as Jumia Kenya CEO. It also appointed Dominic Dimba as Managing Director for East Africa with immediate effect.
At the start of 2022, Copia secured $50 million in a funding round. The Series C round was headed by Goodwell Investments.
Launched in Kenya in 2013, Copia harnesses mobile technologies, a network of local Agents, and proprietary Copia Logistics to reach a market that formal retail and Western e-commerce models cannot. Copia brings quality products at the lowest market prices delivered at no cost to thousands of customers every day. To date, the company has fulfilled more than 10 million orders.
Operating its own technology-enabled advanced logistics service, Copia can deliver to the most remote locations, even in places with poor road infrastructure or lack of addresses, at no additional cost to the customer.
