- iProcure, a prominent agritech startup, was placed under administration on April 26, 2024, as announced on May 1st.
- Founded in 2012 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure facilitated connections between agricultural suppliers and retailers, offering inventory management and credit services.
- In August 2022, iProcure raised $10.2 million in Series B funding and traditional debt to support its expansion plans across East Africa.
- Despite raising over $17 million in total funding and receiving a $1.2 million grant from USAID in May 2023, iProcure faced challenges including cash flow constraints and a high burn rate, leading to its collapse and subsequent administration.
iProcure, an Agritech startup based in Kenya, has undergone a significant development as it was placed under administration on April 26, according to an announcement on May 1st.
Founded a decade ago by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure operated as a platform linking agricultural suppliers and retailers, offering inventory management and credit facilities.
In August 2022, the company, backed by Safaricom’s Spark Fund, raised $10.2 million (equivalent to approximately KSh 1.2 billion at that time’s exchange rate) in Series B funding and traditional debt financing. This capital infusion was intended to support iProcure’s ambitious expansion plans across East Africa.
“Following the appointment, all the affairs and business and properties of the company are being managed by the administrator. The directors of the company no longer have any power or authority to deal with these matters,” firm’s administrator, Makenzi Muthusi of KPMG Advisory Services, said in the notice.
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According to data from Tracxn, the company successfully raised over $17 million across five funding rounds. In May 2023, the startup secured $1.2 million from the United States Agency for International Development (USAID) as part of a broader initiative granting $5.5 million to seven agricultural firms to bolster food production efforts.
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The specific reasons behind the company’s collapse remain unclear. However, a former employee, speaking on condition of anonymity to The Kenyan Wall Street, disclosed that iProcure had been grappling with challenges related to cash flow constraints, a substantial burn rate, and other operational issues.
The firm appointed former Novastar Ventures partner Niraj Varia as Group CEO in a management change in 2022. “I left iProcure last year, so have no more information than is in the public domain,” Varia told The Kenyan Wall Street.
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