iProcure, a Kenyan agritech startup, files for bankruptcy amid capital shortfall

May 9, 2024
2 min read
  • iProcure, a Kenyan agritech startup that connects agricultural product distributors and manufacturers, filed for bankruptcy on April 26 after failing to persuade existing and new investors to provide additional capital. 
  • Stefano Carcoforo, the company's co-founder and director, confirmed to a Kenyan court that iProcure needed bankruptcy protection due to financial difficulties and failure to meet its debt obligations. This development comes after the startup raised $17.2 million in funding. 

Per Carcoforo, in an affidavit filed in court, “I, Stefano Francesco Carcoforo sincerely declare that the company is not able to pay its debt as and when they fall due.

“The company has lately been unable to meet its financial obligations on a day-to-day basis. At that point, the company approached its shareholder and other potential investors to pump in more investments to enable the company to trade normally in the market.”

Although Carcoforo did not disclose the company's liabilities, a report indicates that it estimates its debts to exceed $1.5 million. The startup has reportedly been under administration since April 26, 2024, following its failure to pay creditors. 

The court has appointed the advisory arm of KPMG. This means that Makenzi Muthusi of KPMG Advisory Services will lead the company indefinitely, overseeing all aspects of iProcure, including properties, and operations, and handling all creditors' claims.

According to a notice by KPMG, “Any party having a claim against the company should submit their claim in writing, with relevant supporting documentation to the Administrator on or before 14 May 2024 for consideration.”

Furthermore, the document stated that the company's former directors would relinquish all authority and control, as well as any involvement or influence in iProcure-related matters.

Meanwhile, if efforts to resurrect the company fail, liquidation may be the only option, allowing the company to settle its debts and pay its creditors.
In March 2023, the startup secured $1.2 million from the United States Agency for International Development (USAID) as part of a $5.1 million grant the agency gave seven agriculture firms in Kenya to support food production.

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