Marketforce, a five-year-old business-to-business (B2B) e-commerce platform, is currently undergoing a significant transformation as it reevaluates its operations and explores new business models in response to market dynamics. B2B transactions involve exchanges between businesses.
The startup, which initially expanded to five African markets – Kenya, Nigeria, Uganda, Tanzania, and Rwanda – with plans to enter Ethiopia and Ghana through a partnership with Cellulant, has now reduced its activities and is concentrating solely on operations in Kenya and Uganda.
Founded in 2018 by Tesh Mbaabu and Mesongo Sibuti, Marketforce experienced rapid growth, fueled by venture capital funding, owing to its asset-light business model. The company notably secured substantial Series A funding of $40.0 million in February 2022 and recently initiated a community fundraising round to raise $1.0 million. Marketforce’s primary product, a B2B commerce and fintech platform named “RejaReja,” claims to have processed transactions exceeding $500.0 million and established a network of over 250,000 retail outlets.
This downsizing decision aligns with a broader trend observed in the African tech ecosystem, as startups grapple with challenges stemming from a decrease in venture capital funding. Several companies, including Kenya’s Sendy and Ghana’s Dash, have recently ceased their operations.
In response to these challenges, Tesh Mbaabu, the CEO and Co-founder of Marketforce, has indicated that the company is now exploring alternative avenues with higher profit margins, particularly in adjacent verticals like social commerce. This strategic shift underscores the need for adaptability and innovation in the ever-evolving landscape of B2B e-commerce, particularly within the African context.
Marketforce’s move to downscale operations and explore new business opportunities signifies the company’s proactive response to market challenges. As the African tech ecosystem witnesses a shift in venture capital dynamics, it is clear that adaptation and diversification are essential for the long-term sustainability of companies operating in the B2B e-commerce sector. Marketforce’s journey toward “adjacent verticals” like social commerce exemplifies the resilience and flexibility required to navigate the changing e-commerce landscape in Africa.
