MarketForce, a startup from Kenya supported by Y Combinator since 2018, is closing down its B2B e-commerce platform, RejaReja. Tesh Mbaabu, one of the company’s founders, announced this decision on Wednesday.
But, there’s a new chapter for MarketForce. They’re launching Chpter, a social commerce startup that uses AI to handle business chats on WhatsApp and Instagram.
Mbaabu explained that tight profits and struggles to make money led to closing RejaReja. He said, “business model was challenging and capital-intensive.”
MarketForce started as a sales tool but switched to B2B e-commerce with RejaReja. It helped small shops buy from big brands like Unilever and Nestle, and offered digital loans with Pezesha.
Early on, investors were excited about B2B e-commerce. MarketForce got $2 million in 2020 and joined Y Combinator. They hit big milestones, like backing 1 million merchants and raising $40 million in 2022.
But, things changed. Investors got less interested, and big players in B2B e-commerce merged. A Nigerian startup, Alerzo, struggled to make money too.
MarketForce also had money problems with Pezesha, but they worked it out, avoiding a lawsuit.
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