African B2B e-commerce startup Sabi has laid off round 20% of its workforce (~50 workers) because it pivots from its unique retail-focused platform to double down on a rising enterprise in commodity exports.
The layoffs, confirmed by the corporate on Thursday, are a part of a broader restructuring geared toward aligning assets with what it describes as rising demand for traceable, ethically sourced commodities, an space it started constructing out final 12 months below a brand new vertical known as TRACE (Expertise Rails for African Commodity Trade).
Launched in Lagos in 2020, Sabi started as a software program platform serving to casual retailers digitize stock and gross sales amid COVID-19 disruptions. It later expanded right into a fast-moving shopper items (FMCG) market with embedded finance, scaling throughout Nigeria and Kenya. By mid-2023, Sabi claimed over 300,000 retailers and $1 billion in annualized GMV.
That momentum helped it safe a $38 million Collection B spherical at a $300 million valuation.
However like many startups within the B2B e-commerce house in Africa, Sabi confronted structural headwinds: skinny margins, capital depth, and difficult unit economics. In contrast to rivals that burned by capital, Sabi maintained an asset-light mannequin and stayed worthwhile. Nonetheless, the market shift has been clear.
In March, the corporate launched TRACE as a brand new enterprise line, alongside FMCG. The brand new vertical targets mineral and agricultural exports similar to lithium, cobalt, tin, and money crops, the place international consumers more and more demand transparency, ESG compliance, and traceability.
Sabi says it now exports over 20,000 tons of such commodities month-to-month to consumers throughout the U.S., Europe, and Asia. It has additionally launched operations within the U.S. and made senior hires to help that growth.
“Sabi is coming into its subsequent chapter, with a targeted dedication to commodity commerce and traceability for international clients,” it mentioned in a press release.
“We’re doubling down on the a part of our enterprise seeing probably the most demand, constructed on the sturdy basis we’ve laid since 2021 by supporting African retailers and their progress. To align with this momentum, we’ve made the troublesome determination to restructure elements of our group.”
The transition underscores a broader theme: as casual commerce platforms in Africa seek for sustainability, Sabi is displaying that evolving into infrastructure performs for international commerce is feasible. Whereas this technique presents greater margins and clearer paths to profitability, it will possibly additionally result in inner shakeups as Sabi’s restructuring exhibits.
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