The decision, Copia says, was informed by the need to make profit and build a sustainable business model, among others.
It also attributes the exit to an array of external factors, such as an economic downturn and constrained capital markets, which are expected to persist.
Moreover, it will also be pausing its Africa expansion plans.
“To accelerate Copia’s drive to profitability, the company is pausing its Africa expansion plans and suspending its recently established Uganda operation during this period,” the firm said in a statement.
Read More: E-Commerce Platform Copia Exits Ugandan Market after making massive losses“This decision is consistent with many of the best companies in Africa and across the world, which are responding to the market environment and prioritizing profit.”
Copia entered the Ugandan market about a year ago, looking to grow its marketshare from its home base in Kenya.
It paid off in November last year after the startup opened a 24,000-square-foot facility in Kampala, covering 14 districts in the country.
It also doubled up as a key depot for the region.
“This highly focused approach will ensure that Copia is well positioned to pursue its pan-African ambitions with its proven formula for successful expansion, to serve the 800 million middle and low income consumers through the power of e-commerce.”
Copia Global provides e-commerce solutions for the rapidly growing 750 million middle-to-low-income African consumers through mobile applications, agent networks, and an innovative last-mile logistics system.
