MarketForce Shuts Down its B2B Arm

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Kenyan startup MarketForce, a Y Combinator-backed company announced the closure of its flagship B2B e-commerce platform, RejaReja. This decision comes after facing challenges in achieving profitability within the competitive B2B e-commerce landscape.

MarketForce isn't shying away from innovation, however. They're launching a new venture called Chpter, a social commerce platform that leverages AI to automate business conversations on popular platforms like WhatsApp and Instagram. This move signifies a clear pivot away from the resource-intensive world of B2B e-commerce.

The closure of RejaReja can be attributed to several factors. MarketForce co-founder Tesh Mbaabu acknowledged the difficulties encountered, including razor-thin margins that plagued the B2B e-commerce sector. Intense competition further exacerbated the issue, leading to unsustainable price wars. Additionally, the business model itself required significant capital investment. These challenges, coupled with difficulties meeting financial obligations to a credit partner, ultimately led to RejaReja's closure.

Mbaabu also pointed to a shift in investor sentiment towards B2B e-commerce. While initial excitement for the sector helped MarketForce secure funding in its early days, recent years have seen a slowdown in investment. Mergers like Wasoko and MaxAB, and employee reductions at Alerzo, paint a picture of growing challenges within the B2B e-commerce space.

MarketForce's story highlights the dynamic nature of the startup world. After initial success with RejaReja, securing funding, and reaching milestones like supporting over a million merchants, the company has had to adapt its strategy in response to market realities.

The launch of Chpter demonstrates MarketForce's agility and willingness to evolve. While the platform's success remains to be seen, the move signifies a strategic response to the changing business environment. MarketForce's pivot towards social commerce positions them to capitalize on new opportunities within the digital landscape.

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