After raising $38 million, African e-commerce startup Sabi excludes 20% and pivots to trackable exports
African B2B e-commerce startup Sabi has fired about 20% of its workforce (~50 employees) as it pivots from its original retail-centric platform and has repeatedly doubled its commodity export growth.
Layoff, Confirmed by the company On Thursday, it was part of a broader restructuring aimed at explaining resources as an increase in demand for ethically sourced products that can track resources, and the area was built last year under Trace (the Technology Rail for Replacement of Products in Africa).
Launched in Lagos in 2020, Sabi began as an informal retailer-backed software platform that digitizes inventory and sales amid the Covid-19 turmoil. It then expanded Nigeria and Kenya to expand into a fast-moving consumer goods (FMCG) market with embedded finance. By mid-2023, Sabi had claimed $1 billion in annual GMV with over 300,000 merchants.
That momentum helped it secured $38 million Series B Round valuation.
But like many startups in the B2B ecommerce space in Africa, the rust has faced structural headwinds: thin margins, capital strength, harsh unit economics. Unlike its capital-burning competitors, Rusbi maintained its asset light model and maintained profitability. Still, the market changes are clear.
In March, the company launched Trace as a new business line alongside FMCG. The new vertical targets target minerals and agricultural exports such as lithium, cobalt, tin and cash crops.
Sabi says it currently exports more than 20,000 tonnes of such goods each month to buyers in the US, Europe and Asia. They also started operations in the US and hired seniors to support their expansion.
“Sabi enters the next chapter and has a focused commitment to product trade and traceability for its global customers,” it said in a statement.
“We have doubled on the business side, seeing the most demand, built on a strong foundation built on supporting African merchants and their growth since 2021. We have made the difficult decision to rebuild a part of our team to match this momentum.”
The transition emphasizes a broader theme. As Africa’s informal commercial platforms search for sustainability, Sabi shows that it is possible to evolve into infrastructure for global trade. This strategy offers a clearer path to higher margins and profitability, but could also lead to internal shakeups as Sabi’s restructuring show.