Copia Kenya, an e-commerce and fintech platform, has been placed under administration as it faces significant financial restructuring.

The company announced via a statement that it has appointed Makenzi Muthusi and Julius Ngonga of KPMG to manage the administration process.

Muthusi and Ngonga will spearhead the administration, prioritizing Copia Kenya's continued operation and future self-sufficiency.

They will work alongside the existing management team to develop a plan for profitability and a streamlined operational structure.

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"The Company has hired Makenzi Muthusi and Julius Ngonga of KPMG to lead an administration process whose main objective is to maintain the company as a going concern," Copia stated.

The decision comes after Copia Global, the parent company, failed to secure capital on terms that were agreeable to all stakeholders.

As a result, Copia Global is winding down, allowing Copia Kenya to seek investment independently.

"Copia Global is now winding down, leaving the Copia Kenya business in a new position to raise capital directly," the statement read.

The administrators will work closely with the management team to attract new investors and ensure the company's continuity.

This move occurs in a difficult financial climate, where African venture capital has seen a marked decline.

According to Partech, from 2022 to 2023, venture capital investment in Africa dropped by 46 per cent, the number of participating investors decreased by 50 per cent, and funding for the e-commerce sector fell by 53 per cent.

Despite these challenges, debt financing has become a vital alternative, representing more than a third of the capital raised last year for African tech startups.

As part of the administration's mandate, Copia Kenya will implement a strategy aimed at reducing operational costs, hastening the path to profitability, and focusing on the digital consumer.

Although preserving jobs is a priority, the company foresees necessary staff retrenchments to adapt to the new digital strategy and position itself for growth.