Sabi, a Lagos-based B2B e-commerce startup, has laid off 20% of its workforce in a major restructuring effort aimed at streamlining operations and doubling down on its core business: commodity trade and traceability for global customers.
The move comes just over a year after the company raised $38 million in a Series B funding round that valued it at $300 million, signaling investor confidence despite broader turbulence in Africa’s B2B e-commerce sector.
In an official statement, Sabi framed the layoffs as a difficult but necessary step to align with its long-term strategy. “We are entering our next chapter with a focused commitment to commodity trade and traceability,” the company said. “To match this momentum, we’ve made the tough decision to restructure parts of our team.”
The cuts affect roles across the organization, though Sabi did not specify which departments were hardest hit. The company expressed gratitude to departing employees, calling them “instrumental” to its growth since its 2021 launch.
Sabi’s restructuring reflects broader recalibrations within Africa’s B2B e-commerce space, where startups once flush with investor cash are now tightening operations amid rising interest rates and shifting market dynamics.
Unlike competitors such as Wasoko, MaxAB, and TradeDepot — which operate asset-heavy models with owned warehouses and logistics — Sabi has pursued an asset-light approach, acting as an intermediary between manufacturers, distributors, wholesalers, and retailers. This flexibility, executives argue, has allowed it to scale efficiently while maintaining sound unit economics.
“We focus on the fundamentals and ensure profitability before pursuing expansion,” Sabi told TechCrunch last year. That discipline appears to be paying off: the company claims over 300,000 merchants on its platform and an annualized gross merchandise value (GMV) exceeding $1 billion — a fivefold increase from its reported $200 million GMV in late 2021.
The layoffs coincide with Sabi’s push into international markets, particularly the U.S., where it recently appointed Chris Moorman as Director of Corporate Strategy. Moorman, who joins other recent hires James Murray and Sanjeev Kulkarni, is tasked with deepening partnerships with American buyers and driving expansion efforts.
The company has also hinted at further African expansion, with plans to enter Tanzania, Malawi, the Democratic Republic of Congo, and Francophone West Africa — potentially through acquisitions.
Despite its rapid growth, Sabi faces questions about long-term sustainability in a sector where many players have struggled to maintain profitability. Its primary revenue streams — a 5–6% take rate on marketplace transactions and financing margins on credit services — have so far proven resilient. The startup says it has facilitated over $100 million in credit through partnerships with microfinance banks and fintech lenders.
Sabi’s cuts follow similar contractions across Africa’s B2B e-commerce landscape. Over the past two years, once high-flying startups have scaled back aggressive growth tactics, retreating from unprofitable markets and slashing burn rates.
For now, Sabi insists its restructuring will fortify its position. “This shift ensures we remain focused on building scalable, responsible supply chains,” the company said. But as investor scrutiny intensifies, the pressure is on to prove that its model can endure beyond short-term explosive growth.