Kenyan-based retail B2B and distribution platform Marketforce recently announced a major restructuring, which included a significant reduction in its workforce. The move is part of a broader strategy aimed at streamlining operations in its home market, Kenya, one of the five countries where it operates, including Nigeria, Rwanda, Uganda, and Tanzania.The company confirmed that 54 employees were affected, representing approximately 9% of its workforce, which previously exceeded 600. The layoffs impacted teams in field sales, supply chain, and customer experience, roles that had been crucial during Marketforce’s rapid growth phase. However, these positions became less essential as the company pivoted its focus towards increasing revenue per merchant and achieving profitability.Marketforce CEO Tesh Mbaabu explained the decision, stating, “We’ve shifted from a growth-first mindset to one centered on sustainability and profitability.”
A Journey of Growth and Scaling
Founded in 2018, Marketforce initially offered a SaaS solution for retail distribution. By 2020, the company launched RejaReja, a marketplace platform enabling informal traders to source goods directly from suppliers, make digital payments, and offer additional services such as utility bill payments.Since its inception, RejaReja has achieved impressive milestones, recording over 450,000 orders and $200 million in annualized transaction volumes. This represents steady growth from last year, when the platform projected $60 million in annualized transactions.
Recent Investments
Earlier this year, Marketforce secured $40 million in a Series A funding round. The investment—split equally between debt and equity—was led by various investors, including V8 Capital Partners and SOSV Select Fund. This funding was intended to support product expansion and regional growth across East and West Africa.Despite these achievements, the company now faces challenges that have prompted it to reassess its priorities. According to Mbaabu, part of this realignment involves focusing on high-margin products and adopting consignment-based operations, which have led to a reduction in the number of suppliers the platform works with.
Impact on Employees
The restructuring has led to redundancies in Kenya, but the company has pledged to support affected employees. Assistance includes counseling services, career workshops, recruitment partnerships, severance packages, and letters of recommendation.”Layoffs are never an easy decision,” Mbaabu said. “It’s about balancing humanity with the long-term interests of the business.”
A Changing Landscape for African Tech
The tech industry across Africa has faced its own set of challenges in recent months, with several startups downsizing staff or restructuring operations. Marketforce’s layoffs follow similar announcements from other companies in the region, reflecting a global trend of tightening budgets amid economic uncertainties.Nonetheless, optimism persists. The first half of the year has already seen significant investment inflows into Africa’s tech sector, and industry leaders remain hopeful about sustained growth and opportunities across the continent.As Marketforce navigates these changes, the company is also accelerating expansion in Tanzania, a market that had previously only accessed its SaaS platform. With an eye on profitability and efficiency, the firm remains focused on refining its operations while exploring new growth avenues.
