iProcure, a Kenyan agritech startup facilitating connections between agricultural product distributors and manufacturers, recently filed for bankruptcy on April 26. Despite having previously raised $17.2 million in funding, the company found itself unable to secure additional capital from existing or new investors, leading to its decision to seek bankruptcy protection.
Stefano Carcoforo, iProcure’s co-founder and director, confirmed the bankruptcy filing to a Kenyan court, citing financial difficulties and an inability to meet debt obligations. In an affidavit submitted to the court, Carcoforo stated that the company was unable to pay its debts as they became due and struggled to fulfill its financial obligations on a day-to-day basis.
While Carcoforo did not disclose the exact amount of iProcure’s liabilities, reports suggest that its debts may exceed $1.5 million. Following the bankruptcy filing, the startup has reportedly been under administration since April 26, with Makenzi Muthusi of KPMG Advisory Services appointed to oversee the company’s affairs.
As per the court’s appointment, Muthusi will lead iProcure indefinitely, managing all aspects of the company’s operations, properties, and handling creditors’ claims. The court has set a deadline of May 14, 2024, for creditors to submit their claims in writing, along with relevant supporting documentation, to the administrator for consideration.
In light of iProcure’s financial challenges, the company’s former directors will relinquish all authority and control over its affairs. Any involvement or influence in iProcure-related matters will cease as the administration process unfolds.
If efforts to revive the company prove unsuccessful, liquidation may become the only recourse. Liquidation would allow iProcure to settle its debts and fulfill its obligations to creditors, bringing closure to its financial woes.
Notably, iProcure had secured a $1.2 million grant from the United States Agency for International Development (USAID) in March 2023. The grant was part of a larger initiative aimed at supporting food production in Kenya, highlighting the startup’s previous efforts to advance agricultural sustainability in the region.