The B2B sector is often viewed as a less volatile haven compared to the high-burn, consumer-facing market. But the recent closure of TradeHub, an Egyptian B2B startup co-founded by the celebrated founder of logistics giant Bosta, serves as a stark reminder that no model is immune to the pressures of finding product-market fit.
Two months ago, co-founders Ahmed Gaber and Ahmed Atef made the decision to wind down operations. Yesterday, the company was officially dissolved, and all remaining capital was returned to its investors.
The venture, which raised a $1.4M pre-seed round in February 2024, has become the latest in a series of startups in the Africa and Middle East region to opt for a managed closure and capital return, signalling a maturing ecosystem where failure is handled with transparency and accountability.
The 18-Month Search
Launched in late 2023, TradeHub began with a clear and ambitious vision: to build a cross-border B2B marketplace connecting Egyptian manufacturers with international buyers, initially targeting the UK. The founding team had a strong pedigree. Gaber was known for co-founding Bosta, one of the Middle East’s most successful logistics companies, while Atef brought experience as a former software engineer at Meta.
Backed by prominent investors including Concept Ventures, TLcom Capital LLP, and Armyn Capital, the team spent 18 months trying to validate its initial idea.
“We spent the following 18 months validating and experimenting on our initial idea of a cross-border B2B marketplace, before eventually pivoting to a B2B sales automation SaaS tool,” Gaber wrote in a public statement.
Despite the pivot, the struggle continued. The new SaaS model also failed to gain the necessary traction. “Despite our best efforts, we couldn’t reach product-market fit,” Gaber admitted.
Faced with a dwindling path to success and still holding unspent capital, the founders confronted a difficult choice: pivot a second time or shut down. They chose the latter.
“The short answer is: conviction,” Gaber explained. “By the time we explored multiple directions and learned from our experiments, we no longer had strong enough conviction in a third idea that justified the risk of continuing. Continuing just for the sake of ‘trying something else’ didn’t feel responsible to us.”
A Sign of Maturity?
TradeHub’s closure is part of a broader, more sobering narrative unfolding across the region’s tech landscape. After years of celebratory funding announcements, startups are increasingly confronting the realities of difficult economic conditions and the challenge of achieving venture-scale outcomes.
The decision to return capital places TradeHub alongside other regional startups like Nigerian fintech Thepeer and edtech Edukoya, both of which ceased operations in 2024 and returned remaining funds to investors.
This approach stands in contrast to more contentious closures that can involve protracted disputes. For founders, a responsible wind-down can preserve reputational capital. For investors, it reinforces confidence that their capital is being stewarded responsibly, even when a venture fails.
Gaber echoed this sentiment, framing the decision as a sign of growth. “Making the difficult but responsible decision to wind down was a sign of maturity, not of giving up,” he stated. “I’ve come to learn that knowing when to let go is just as important as knowing when to push forward.”
Failure is Part of the Process
For Gaber, the outcome marks a significant contrast to his first venture. Bosta, founded in 2017, successfully scaled to become a key player in e-commerce fulfillment and last-mile delivery across the Middle East. His attempt to replicate that success with TradeHub underscores that a founder’s past achievements are no guarantee of future results.
“My first startup, Bosta, became one of the most successful in the Middle East, while TradeHub did not succeed,” Gaber reflected. “Both were vastly different, yet equally valuable, experiences that helped me grow in profound ways.”
After nine years building two startups back-to-back, Gaber announced he will be taking a few months to “recharge” before considering his next move.