Kenya: Agritech Startup iProcure Placed under Administration

iProcure, an agritech startup that secured significant funding, has been placed under administration, as announced by the administrator in a notice published in local newspapers on May 1st.

Founded a decade ago by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure is a platform that facilitates connections between suppliers and retailers in the agricultural sector. Additionally, it offers inventory management and credit facility services.

In August 2022, the firm raised $10.2 million (equivalent to KSh 1.2 billion at the exchange rate then) in Series B funding and conventional debt to support its expansion efforts 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.

According to Tracxn, the company has raised over $17 million across five funding rounds. In May 2023, iProcure secured $1.2 million from the United States Agency for International Development (USAID) as part of grants totaling $5.5 million awarded to seven firms operating in the agricultural sector. These grants were designated to support food production initiatives.

Although the exact reasons for the company’s collapse were not immediately apparent, a former employee, who preferred to remain anonymous, informed The Kenyan Wall Street that iProcure had been grappling with cash flow constraints and a high burn rate, among other challenges.