Wasoko reportedly shuts down operations in Tanzania and halts its operations in Uganda and Zambia. What does this mean for the region and other regions where it has paused its business? This and many more to find out in the course of this post.
Wasoko Shuts Down Operations in Tanzania
Wasoko, a Kenyan eCommerce startup, has made the decision to cease operations in Tanzania and temporarily suspend operations in Uganda and Zambia. However, the company will continue to serve as a representative of the Silicon Zanzibar initiative as a “private sector ambassador.”
Wasoko will maintain operations in Kenya, Rwanda, and the Democratic Republic of Congo. This decision is part of a company-wide restructuring aimed at focusing on its most robust markets.
The Main Reason for the New Development
The move comes amid a period of turbulence for Wasoko, particularly following its announcement in December 2023 of plans to merge with MaxAB, an Egyptian eCommerce company, to create a powerhouse serving 65 million customers across eight African markets.
However, the merger has faced challenges, with key executives, including co-founder Josh Raine, the CFO, CTO, and HR head, departing from the company. Additionally, about 10% of the workforce was laid off in January due to overlapping roles post-merger announcement.
The Reaction of Former Employees Towards This Development
Former employees have raised concerns about their exit packages, leading to legal action against Wasoko. Despite these challenges, the company remains resilient, and the recent decision to streamline operations reflects its commitment to focusing on markets with the greatest potential for growth. The future trajectory of Wasoko remains uncertain amidst these recent developments.
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