Tech

Kenyan B2B e-commerce platform, Zumi, shuts down after failing to raise lifeline funding

Published

2 years ago

March 26, 2023

Kenyan B2B e-commerce startup, Zumi, has been forced to shut down its operations due to its inability to raise funding necessary to sustain it, according to CEO and co-founder of the platform, William McCarren.

McCarren who announced the decision to shut down the platform in a statement posted on LinkedIn on Saturday, said the company’s decision to close down was as a result of the current global economic situation which has made it very hard to raise money.

He also cited the tough market conditions and money problems dogging many businesses the world over which has made promising technology companies going out of business one after the other.

“With a heavy heart, I must tell you that Zumi is leaving the business. The current economic situation has made it very hard to raise money, and our business was unable to become self-sufficient in time to survive,” McCarren wrote.

The closure of Zumi will see the company lay off its team of 150 people who have previous work experience from top line companies like SpaceX, Amazon, Twiga, and Jumia.

Since its formation in 2016, Zumi has been able to raise a paltry $920,000 in investments, while the company has made more than $20 million in sales during that time, according to its last fiscal report.

Zumi started out as a digital magazine for women, but when it could not make enough money from digital ads, it left the media sector and went into e-commerce instead.

The shutdown of Zumi adds to a list of top Kenyan startups that have shut down in the last few years including Kune Foods, Notify Logistics, and WeFarm, which all shut down last year.citing macroeconomic problems.

Related Topics:B2B e commerce Featured Funding Kenya Zumi

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Tech

20 African tech-preneurs embark on Korean innovation tour

Published

7 hours ago

December 22, 2024

Isaac Dachen

The African Development Bank Group’s Innovation and Entrepreneurship Lab has selected 20 promising tech entrepreneurs from various African technology ventures and enterprise support organisations to embark on a two-week study tour of the Republic of Korea, with the aim of seeking investment and insights from the country’s innovative tech ecosystem.

The selected entrepreneurs are from 133 ventures that participated in last month’s Africa Tech Startup Forum.

The forum which will hold under the auspices of the lab’s “Leveraging the Entrepreneurial and Innovation Success of Korea to Strengthen African Enterprise Support” project, had selected entrepreneurs who pitched the best business models during the week-long virtual market access and acceleration programme preparing, training, and connecting technology ventures with opportunities.

The 20 young tech-preneurs were selected from eight African countries including Nigeria, Egypt, Ghana, Kenya, Morocco, Rwanda, South Africa, and Uganda, with the delegates spanning various sectors in the technology space.

While in Korea, the African delegates will pay visits to prestigious institutions such as Global Startup Centre, LG Science Park, the Korea Software Technology Association, and the Global Digital Innovation Network.

Speaking on behalf of the delegates, founder of Kenya-based health technology venture Zuri Health, Uche Ezadinachi said:

“I am excited to go to Korea because the country has made serious technological developments. The country is a technology-driven society, and this tour is an opportunity for me to see how we can bring such technology to Africa.

“We will share experiences with our Korean counterparts; they will learn from us as much as we learn from them,” he added.

Tech

Kenya’s ticketing startup BuuPass partners Flexpay for flexible travel payments

Published

3 days ago

December 19, 2024

Isaac Dachen

Kenyan digital ticketing startup, BuuPass, has entered into a partnership with goal-based savings platform, Flexpay, to offer customers flexible payment plans ahead of holiday travels as well as simplify travel planning and ease the financial burden of holiday travel for Kenyans.

Co-founder and CEO at Buupass, Sonia Kabra, who unveiled the package at a press conference, said the collaboration between the two platforms will allow travellers to save for their journeys in manageable, interest-free installments over four to 12 weeks.

“Travelers can select their travel dates, book tickets, and pay a small deposit upfront, with the remaining balance spread across weekly or monthly payments,” she said.

“This approach offers a stress-free way for families and large groups to secure their tickets early, helping them avoid last-minute price hikes as fares are locked in.

“By partnering with Flexpay, we’re giving travelers the flexibility to budget for their trips in advance. This initiative aligns with our mission to make travel accessible to everyone, providing a solution that meets customers where they are financially,” said Kabra.

Also speaking at the event, Richard Machomba, CEO and founder of Flexpay, said:

“Flexpay’s mission is to empower individuals by providing accessible financial solutions that make it easier for them to achieve their financial goals.

“By partnering with BuuPass, we’re making travel more accessible and stress-free for Kenyans, especially during the holiday season when expenses can be overwhelming,” Machomba added.

Founded in 2016 by Kabra and Wyclife Omondi, BuuPass is a B2B2C mobility marketplace that enables users to search, compare, and book travel tickets via web, app, or USSD, while its SaaS platform helps bus operators manage their operations, inventory, and sales.

FlexPay, on the other hand, is an online and offline payment gateway that allows merchants to offer interest-free targeted savings to their customers in Africa.