MarketForce Technologies Limited, a prominent player in Africa’s B2B e-commerce sector, is currently entangled in a legal dispute as Kenyan fintech firm Pezesha Africa Limited initiates the process for its liquidation. Pezesha has filed an insolvency petition at the High Court of Kenya, Nairobi Milimani Commercial and Tax Division, citing significant unpaid debts. This move signifies a further decline in the fortunes of the startup.
MarketForce, recognized for its ambitious vision to digitize Africa’s informal retail sector, has encountered substantial challenges in recent times. Founded five years ago by Tesh Mbaabu and Mesongo Sibuti, the company initially operated across multiple African countries, establishing a presence in Kenya, Nigeria, Uganda, Tanzania, Rwanda, and having expansion plans for Ethiopia and Ghana through a strategic partnership with Cellulant.
However, MarketForce faced setbacks due to funding challenges and market complexities, compelling the company to scale down its operations. Recent reports indicate a withdrawal from three of its five markets, with a renewed focus primarily on Kenya and Uganda. This downsizing initiative, accompanied by significant job cuts, aligns with a broader trend in Africa’s tech ecosystem, where startups contend with a slowdown in venture capital inflow.
CEO Tesh Mbaabu has acknowledged the strategic shift, indicating a pivot towards alternative business models to navigate the turbulent financial waters. Despite earlier attempts at crowdfunding, aimed at infusing USD 1 million into the company and engaging stakeholders, MarketForce struggled to alleviate its financial strain.
The insolvency petition filed by business credit provider Pezesha sheds light on the escalating debt owed by MarketForce, according to local business publication Kenyan Wall Street. This has prompted legal proceedings to recover the outstanding sum, adding another layer of uncertainty to MarketForce’s trajectory as the company actively explores avenues to stay afloat and sustainably grow in a challenging market landscape.
MarketForce’s journey, once brimming with promise, now stands at a critical juncture, emblematic of the broader challenges faced by startups navigating Africa’s tech space. As the company grapples with this crisis, the outcome could significantly impact the future landscape of B2B e-commerce in the region.
With a court date set for March 11, 2024, the impending liquidation order casts a shadow over MarketForce’s future. The notice further calls upon any other creditors or contributors of MarketForce to participate in the scheduled hearing, potentially influencing the outcome of this high-stakes legal battle that mirrors another ongoing case involving one of Kenya’s most recognized startups.
Earlier this month, Twiga, a business-facing e-commerce platform for fresh produce and packaged food, faced a debt collection lawsuit from cloud services vendor Incentro Africa worth over USD 200 K. The lawsuit, a continuation of prior disputes between Twiga and Incentro, involved a petition from Incentro to liquidate Twiga, which Twiga contested, obtaining temporary orders to block the liquidation. Twiga confirmed ongoing discussions with Incentro to settle the debt.
