Kenyan agritech startup iProcure, a well-funded company that aimed to revolutionize the agricultural sector, has been placed under administration, raising concerns about its future.

The news, announced on May 1, 2024 through local newspaper notices, comes as a surprise considering the company's past fundraising success.

Founded a decade ago, iProcure established itself as a key player in connecting agricultural suppliers and retailers.

Their services extended beyond connections, offering inventory management tools and credit facilities to streamline operations for stakeholders.

The company secured significant funding throughout its journey, with over $17 million raised across five funding rounds according to Tracxn, a global startup data platform.

Read More

  1. Kenyan fintech Leja surpasses Sh256 billion in B2B transactions in 2024
  2. Sochitel Group brings its cross-border digital products to Kenya, East Africa
  3. AERC Summit to explore Africa's US$65 billion FinTech growth by 2030

Notably, they received a $10.2 million Series B funding boost in August 2022, coupled with additional debt financing, to fuel their East African expansion plans.

Furthermore, iProcure secured a $1.2 million grant from the United States Agency for International Development (USAID) in May 2023, highlighting their contribution to food production efforts.

Despite the financial backing, the reasons behind the administration remain unclear.

Speculations from a former employee, who wished to remain anonymous, suggest the company might have been battling cash flow issues and a high burn rate.

Niraj Varia, appointed as Group CEO in a 2022 management shake-up, confirmed his departure last year and expressed limited knowledge about the current situation.

KPMG Advisory Services' Makenzi Muthusi was appointed administrator for iProcure.

As per the official notice, "all the affairs and business and properties of the company are being managed by the administrator."

The future of the company now hinges on the administrator's efforts.

Whether they can revive iProcure or are forced to consider liquidation as a last resort remains to be seen.

This development casts a shadow over the agritech sector, raising questions about the sustainability of such ventures and the challenges they face in a competitive landscape.