A Kenyan High Court has ordered Copia Kenya, the e-commerce company that raised $123 million to serve consumers outside the country’s major cities, into liquidation after more than two years of administration failed to revive the business.
In its September 17 ruling, the court found no realistic path for Copia to return to operating as a going concern, and said extending the administration would only add delay and costs. The company had exhausted the purpose of the rescue process, while its remaining assets were estimated at KES 206.6 million ($1.6 million) as of February.
The ruling closes one of Kenya’s biggest startup funding stories and raises a bigger question about the economics of serving consumers outside the country’s main urban centres, where reaching customers can be more expensive than the value of each transaction.
“I am satisfied that the Joint Administrators have demonstrated, on a balance of probabilities, that the objectives of administration have been exhausted,” Justice Rhoda Rutto wrote in the ruling.
Originally published by TechCabal.