MarketForce Faces Liquidation Threat In Debt Dispute With Pezesha
MarketForce Technologies Limited, a notable player in Africa’s B2B e-commerce sector, finds itself embroiled in a legal tussle as Kenyan fintech firm Pezesha Africa Limited files for its liquidation. Citing substantial unpaid debts, Pezesha’s insolvency petition lodged at the High Court of Kenya, Nairobi Milimani Commercial and Tax Division, signifies a further deterioration in the fortunes of the startup.
MarketForce, known for its ambitious vision of digitizing Africa’s informal retail sector, has recently faced an uphill battle. Established five years ago by founders Tesh Mbaabu and Mesongo Sibuti, the company initially operated across multiple African countries, boasting a presence in Kenya, Nigeria, Uganda, Tanzania, Rwanda, and had expansive plans for Ethiopia and Ghana through a strategic partnership with Cellulant.
However, the tide turned against MarketForce as funding challenges and market complexities forced the company to downscale its operations. Recent reports indicated a retreat from three of its five markets, focusing efforts primarily on Kenya and Uganda. The downsizing move, accompanied by significant job cuts, came amid a broader trend in Africa’s tech ecosystem, where startups grappled with a slowdown in venture capital inflow.
CEO Tesh Mbaabu acknowledged the strategic shift, signalling a pivot towards alternative business models to navigate the turbulent financial waters. Despite earlier attempts at crowdfunding, which aimed to infuse USD 1 million into the company and engage stakeholders, MarketForce struggled to alleviate its financial strain.
The insolvency petition filed by business credit provider Pezesha sheds light on the escalating debt owed by MarketForce, local business publication Kenyan Wall Street reports, prompting legal proceedings to recover the outstanding sum. This development adds another layer of uncertainty to MarketForce’s trajectory, which actively explored avenues to stay afloat and sustainably grow in a challenging market landscape.
MarketForce’s journey, once brimming with promise, now stands at a critical juncture, emblematic of the broader challenges faced by startups navigating Africa’s tech space. As the company grapples with this crisis, the outcome could significantly impact the future landscape of B2B e-commerce in the region.
With a court date set for March 11, 2024, the impending liquidation order casts a shadow over MarketForce’s future. The notice further calls upon any other creditors or contributors of MarketForce to participate in the scheduled hearing, potentially influencing the outcome of this high-stakes legal battle that mirrors another ongoing case involving one of Kenya’s most recognised startups.
Earlier this month, Twiga, a business-facing e-commerce platform for fresh produce and packaged food, faced a debt collection lawsuit from cloud services vendor Incentro Africa worth over USD 200 K. The lawsuit, a continuation of prior disputes between Twiga and Incentro, involved a petition from Incentro to liquidate Twiga, which Twiga contested, obtaining temporary orders to block the liquidation, though Twiga confirmed ongoing discussions with Incentro to settle the debt.
