Nigerian startup Sabi, a B2B marketplace catering to Africa’s informal sector, has laid off approximately 20% of its workforce – around 50 employees – as it shifts its focus to commodity exports and traceability. Founded in 2020, Sabi has been working to optimize Africa’s informal trade sector by connecting merchants and resellers through its network and providing them with curated business tools and services. These resources help merchants reach new customers, improve cash flow, and streamline logistics.
In 2023, Sabi raised $38 million in Series B funding, reporting over 300,000 merchants and $1 billion in annualized Gross Merchandise Value (GMV) at the time. However, like many other ventures in the African B2B e-commerce space, the startup has faced challenges since then. In response, Sabi is pivoting to capitalize on the growing demand for traceable, ethically sourced commodities. Last year, the company launched TRACE – Technology Rails for African Commodity Exchange – to facilitate this new direction.
“Sabi is entering its next chapter, with a focused commitment to commodity trade and traceability for global customers,” the company stated. “We’re doubling down on the part of our business seeing the most demand, built on the strong foundation we’ve laid since 2021 by supporting African merchants and their growth.” To “align with this momentum,” Sabi made the “difficult decision” to restructure parts of its team. “This was not an easy call,” the company acknowledged. “We are deeply grateful to our departing teammates – their work was instrumental to our journey, and we’re proud of everything we’ve built together. Sabi’s people are among the best in the market, and any company would be lucky to have them.”
The restructuring positions Sabi “for long-term success and ensures we remain focused on building scalable, responsible supply chains,” according to the company. “Our mission remains the same – and we’re more committed than ever to transforming how the world sources from Africa.”
