The Kenyan agri-tech startup iProcure has been placed under administration due to undisclosed unpaid debts.
Founded in 2013, iProcure has built its own distribution network to connect major agricultural suppliers directly to local agro-dealers through its proprietary technology. This system bypasses the traditional layers of middlemen in the agricultural supply chain, providing technology-driven data on supply levels and prices. As a result, iProcure has been able to offer critical agricultural inputs like fertilizers and seeds at discounts of up to 25% off the prevailing market rates.
iProcure has raised a total of US$17.2 million in debt and equity funding, including a US$10.2 million Series B round in 2022. This round was led by Investisseurs & Partenaires (I&P) with contributions from Novastar Ventures, British International Investment (BII), and Ceniarth. The startup, also supported by Safaricom’s Spark Venture Fund, expanded into Tanzania last year. However, it has become one of the many casualties of the global economic downturn and the ensuing “funding winter,” leading to its administration.
KPMG’s advisory arm has taken over the administration of iProcure, with Makenzi Muthusi from KPMG assuming control of the company’s offices, assets, and operations. KPMG issued a notice stating, “Following the appointment, all the company’s affairs, business, and properties are being managed by the Administrator. The directors of the company no longer hold the power or authority to handle these matters.”
KPMG also advised that any party with a claim against the company should submit their claim in writing, along with supporting documentation, to the Administrator by May 14, 2024, for consideration.
Administration provides a financially-struggling company with “breathing space,” protecting it from creditor enforcement actions while exploring financial restructuring options to possibly rescue the business. The process may lead to a sale or, if rescue proves unfeasible, the administrator will aim for a more favorable return for creditors than if the company were immediately liquidated. If revival or sale is not possible, liquidation may be considered as a last resort to allow creditors to recover some of their investments.
iProcure is among the latest in a series of African tech ventures impacted by the current global capital crunch, with several startups shuttering, including Kenyan retail-tech firm MarketForce, which recently had to close down its B2B e-commerce platform RejaReja due to scaling challenges amid the “funding winter.”
