Twiga Foods, a prominent Kenyan e-commerce startup known for its efforts to revolutionize food distribution in Africa, is undergoing significant restructuring efforts. In a move aimed at ensuring profitability and enhancing its business model, the company has announced the layoff of 59 employees. This development comes in the wake of a tumultuous period for Twiga Foods, marked by legal challenges and leadership changes.

This exclusive update was first reported by TechCabal, offering a closer look into the developments shaping Twiga Foods' journey.

Second Round of Job Cuts

The recent layoffs mark the second round of job reductions at Twiga Foods within a year. In August 2023, the company had already cut 283 positions as part of its broader strategy to streamline operations. The latest layoffs are seen as a continuation of these efforts, with the company emphasizing the importance of these changes to achieve long-term sustainability.

Twiga Foods remains committed to its mission of transforming food distribution across Africa through innovative digital solutions. In a statement confirming the layoffs, the company highlighted that the restructuring is essential for accelerating its path to profitability.

New Opportunities in Growth and Innovation

Despite the job cuts, Twiga Foods is simultaneously creating new opportunities within the company. The startup plans to open 25 new roles focused on growth and innovation, signaling its intent to invest in areas that will drive future expansion and service improvement.

Challenges and Leadership Transition

Twiga Foods has faced significant challenges in 2024, including a legal dispute with cloud provider Incentro. The cloud services company took Twiga to court over an unpaid bill of $261,000, shedding light on the startup's financial struggles, including difficulties in paying vendors and employees.

Adding to the company's challenges, March 2024 saw the departure of founder and CEO Peter Njonjo, who left the business shortly after securing new funding for Twiga Foods. His departure sparked speculation about the circumstances, with some suggesting that he may have been pushed out. In May 2024, Charles Ballard, a former executive at Jumia, stepped in as the new CEO, bringing with him a vision to stabilize and grow the company.

In a statement, Ballard expressed confidence in the restructuring efforts, stating that these adjustments would enable Twiga Foods to enhance its service offerings and establish a more robust foundation for sustainable growth.

Funding and Investor Support

Twiga Foods' financial journey has been marked by both challenges and support from investors. In November 2023, the company raised $35 million through convertible bonds from both new and existing investors, including Creadev and Juven. Notably, Peter Njonjo, despite his subsequent departure, invested $1 million of his funds in this funding round, demonstrating his continued belief in the company's mission.

As Twiga Foods navigates a challenging period marked by legal disputes, leadership changes, and restructuring efforts, the company remains focused on its goal of revolutionizing food distribution in Africa. With a new CEO at the helm and fresh investments in growth and innovation, Twiga is poised to build a more sustainable and profitable future.