iProcure, an agritech startup that garnered significant attention after securing millions in funding, finds itself under administration, according to a notice published by the administrator in local newspapers on May 1st. Founded a decade ago by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure aimed to streamline the agricultural supply chain by connecting suppliers and retailers while offering inventory management and credit facilities.
The company’s financial journey saw a notable milestone in August 2022 when it secured $10.2 million (KSh 1.2 billion at the time) in Series B funding and conventional debt. This substantial investment was earmarked for expanding its operations across East Africa. However, despite previous successes, iProcure faced challenges that ultimately led to its administration status.
Makenzi Muthusi of KPMG Advisory Services, appointed as the firm’s administrator, stated, “Following the appointment, all the affairs, 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.”
iProcure’s fundraising efforts were notable, totaling more than $17 million across five funding rounds, as reported by global startup data platform Tracxn. Additionally, in May 2023, the startup received $1.2 million from the United States Agency for International Development (USAID) as part of grants totaling $5.5 million aimed at supporting food production within the agricultural sector.
Despite its promising trajectory, iProcure faced internal challenges, including cash flow constraints and a high burn rate, according to a former employee who chose to remain anonymous. These issues, combined with other undisclosed factors, contributed to the company’s struggles.
In response to inquiries, former Novastar Ventures partner Niraj Varia, who was appointed as Group CEO during a management change in 2022, stated, “I left iProcure last year, so have no more information than is in the public domain.”
While the specifics surrounding iProcure’s collapse remain unclear, its journey underscores the challenges faced by startups in the agritech sector. Despite the company’s efforts to revolutionize agricultural supply chains, it ultimately succumbed to financial pressures.