News in Brief:
– Despite having secured over $17 million in funding, Kenyan agritech startup iProcure has been placed under a court-appointed management.
– The reasons remain unclear, but a former employee suggests cash flow problems may be to blame.
Kenyan agritech startup iProcure, which had secured over $17 million in funding, has been placed under administration, according to a report by TechCabal. The media outlet quoted a notice published by KPMG Advisory Services, the administrator, on May 1.
Founded in 2013, iProcure aimed to connect suppliers and retailers in the agricultural sector while offering inventory management and credit facilities. The company secured significant funding, including a $10.2 million Series B round in August 2022 and a $1.2 million grant from USAID in May 2023.
The specific reasons behind iProcure’s forced change of leadership haven’t been officially disclosed. However, an anonymous source, believed to be a former employee, suggests the company may have faced cash flow issues and a high burn rate.
It’s worth noting that iProcure appointed a new Group CEO, Niraj Varia, in 2022, prior to the current financial challenges. Mr. Varia confirmed he left the company in 2023 and has no further information beyond what’s publicly known.
