Struggling E-commerce venture Sabi downsizes workforce by 20%, readjusting business strategy towards worldwide commodity exchange
**Sabi Shifts Focus to Traceable, Ethically Sourced Commodity Exports**
Sabi, an African B2B e-commerce startup, has announced a strategic shift in its focus from retail services to the export of traceable, ethically sourced commodities. This move is part of a restructuring initiative aimed at capitalising on the growing global demand for such commodities.
Launched in 2020 in Lagos, Nigeria, Sabi began as a platform digitising informal retailers and expanded into an FMCG marketplace with embedded finance. The company has now launched a new vertical called TRACE (Technology Rails for African Commodity Exchange) to support this pivot, utilising technology to ensure the traceability and ethical sourcing of commodities.
Sabi's future plans include scaling the TRACE platform, building robust and scalable supply chains, enhancing transparency and reliability in commodity sourcing, and expanding into other African markets. The company aims to become a leading player in the continent's commodity export sector.
Despite the challenges faced by many B2B e-commerce startups in Africa, Sabi has remained profitable. The company plans to continue its asset-light model while focusing on commodity exports. Sabi's annualised GMV (Gross Merchandise Volume) is $1 billion, and it now exports over 20,000 tons of commodities monthly.
The strategic shift comes in response to surging demand from international buyers seeking more transparency and ESG compliance in sourcing. Sabi's exports are being made to buyers in the U.S., Europe, and Asia. The company has also made senior hires to support its growth in the global commodity trade.
However, the shift comes with growing pains for Sabi. In mid-2023, the company served over 300,000 merchants, but it has recently laid off approximately 50 employees, which is about 20% of its workforce. Despite this, Sabi raised $38 million in its Series B round at a valuation of $300 million.
The company plans to scale TRACE across more global markets, positioning Sabi for long-term success in a rapidly evolving market, with a focus on meeting the demand for traceable, ethically sourced goods.
- Sabi is leveraging technology through the TRACE (Technology Rails for African Commodity Exchange) vertical, ensuring the traceability and ethical sourcing of commodities for its export business.
- In its strategic shift, Sabi aims to become a leading player in the African commodity export sector, utilizing technology to enhance transparency and reliability in commodity sourcing while meeting the growing global demand for traceable, ethically sourced goods.
