MarketForce, a Kenyan B2B e-commerce company, is shutting down its B2B e-commerce business that catered to informal merchants (mom-and-pop stores) after facing challenges over the past two years.
The closure of the B2B e-commerce arm, RejaReja, follows its removal from all markets except Uganda, after initially operating in Nigeria and Kenya. RejaReja aimed to facilitate ordering FMCGs for informal retailers from distributors and manufacturers, addressing issues like stockouts and financing.
Despite serving over 270,000 informal merchants and employing over 800 people at its peak, MarketForce faced difficulties sustaining the business due to aggressive expansion, low profit margins, and a funding crunch after a key investor backed out.
Co-founder Tesh Mbaabu acknowledged the challenges faced by the retail FMCG market, citing razor-thin margins and consistent price wars as major hurdles for the business. MarketForce’s efforts to downsize and adjust the business model were not enough to maintain sustainability.
Investors in MarketForce include Y Combinator, V8 Capital Partners, Ten13 VC, and others. Following the closure of RejaReja, MarketForce is introducing Chpter, a social commerce platform that uses AI to enable merchants to sell on social media platforms.
