iProcure, a Kenyan agritech startup, has taken the step of filing for bankruptcy as it struggles with financial challenges and funding constraints.
The decision to seek bankruptcy protection was disclosed by Stefano Carcoforo, one of the company’s co-founders and directors, in a recent court filing, despite iProcure raising $17.2 million in funding through ten rounds of investment.
Carcoforo noted that iProcure’s financial obligations had become unsustainable, necessitating legal intervention to manage its debts and operational expenses.
According to court documents, iProcure encountered difficulties meeting its financial commitments, prompting efforts to secure additional investments from existing shareholders and potential backers to support its day-to-day operations.
While specific details of iProcure’s liabilities were not disclosed, sources familiar with the matter estimated the company’s outstanding debts to exceed $1.5 million (KES197.25 million), pointing to the magnitude of its financial strain.
Founded in 2013 by Stefano Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi, iProcure aimed to simplify the supply chain for agricultural inputs by connecting distributors directly with manufacturers.
The bankruptcy filing comes as challenges within Africa’s startup sector continue to rise. Ventures are struggling to achieve sustainable profitability despite early-stage investments.D
In response to the financial crisis, iProcure sought legal protection under the Insolvency Act of 2015, appointing Makenzie Muthusi from KPMG’s advisory arm as the administrator tasked with overseeing the company’s restructuring efforts.
Over the years, iProcure had successfully raised capital through multiple funding rounds, including a notable grant from USAID East Africa Trade and Investment Hub and Spark Accelerator in 2023, reflecting its efforts to innovate and drive growth in Kenya’s agricultural sector.
