Copia has announced that it is laying off about 25 per cent of its workforce affecting about 350 of its 1,800 workers attributed to the economic downturn.

Speaking to Citizen Digital, the start-up also said that the layoff is due to the constrained capital markets that had forced it to restructure its operations.

“This restructuring process will likely impact less than 25% of the permanent workforce and will be undertaken in full compliance with Kenyan labour law and with sensitivity to all employees affected by the process,” Copia said.

Further, the company says the restructuring process is intended to ensure that during these economically challenging times, enables it to focus its resources on the critical levers of business success and remain a lean and sustainable business for the long term.

“This decision is consistent with many of the best companies in Africa and across the world which are responding to the market environment and prioritizing profit.”

The business-to-consumer (B2C) company provides a platform for rural, middle to low-income consumers to order products that are delivered at their convenience.

It was founded in 2013 by former Silicon Valley maestros Tracey Turner and Jonathan Lewis.

Its model comprises digitally-enabled, locally-based agents who operate as order and delivery points to meet consumers where they are, online or offline.

Customers can choose and pay for things from a Copia catalogue at the agents, who are already-trusted merchants like a neighbourhood grocer or butcher.

When a customer puts an order, Copia notifies the agent and the consumer through SMS, and two days later, Copia delivers the ordered goods to the agent for the customer to pick up.

According to the business, it currently has a distribution network of approximately 50,000 agents.