On Thursday, Sabi, a Lagos-based B2B e-commerce startup, disclosed that it had reduced its personnel by 20%, or approximately 50 employees, as part of a significant restructuring initiative to enhance its business focus.
This move aligns with Sabi’s strategic pivot toward traceability services in Africa’s minerals and agricultural commodities markets, centering on its TRACE platform that uses blockchain technology to track sourcing and shipment of goods.
Sabi’s strategic shift to traceability services
In 2021, Sabi was established to offer merchants digital tools for financing and logistics. However, the company has recently focused on TRACE, which was developed in collaboration with Minespider.
TRACE creates digital passports that track environmental, social, governance data, and quality certifications for minerals and agricultural products.
This service targets global buyers demanding transparency and ethical sourcing standards, especially in Europe and Asia.
The company’s spokesperson stated, “We’re doubling down on the part of our business seeing the most demand, built on the strong foundation we’ve laid since 2021, by supporting African merchants and their growth.”
The pivot has made some roles redundant, necessitating the layoffs across multiple departments.
Growth and Investment amid restructuring
Sabi continues to expand rapidly in spite of the reductions. It facilitates more than $1 billion in annualised gross merchandise value (GMV) and serves more than 300,000 merchants.
The company raised nearly $60 million in funding, including a $38 million Series B round in 2024 that valued it at $300 million, reflecting strong investor confidence in its platform digitizing Africa’s trade economy.
Sabi’s business model includes a 5-6% take rate from marketplace transactions and financing margins on credit-related transactions. It has facilitated over $100 million in financing through partnerships with microfinance banks and fintech lenders.
The company is also expanding into new African markets such as Kenya, South Africa, Tanzania, Malawi, the Democratic Republic of Congo, and Francophone West Africa.
The restructuring is seen by Sabi as a necessary step to build scalable and responsible supply chains, ensuring long-term success while maintaining its mission to transform how the world sources from Africa.
The layoffs and focus shift highlight the challenges and adjustments African tech startups face amid evolving market demands and investor expectations.
Sabi’s move to specialize in traceability services underscores the growing importance of transparency and ethical sourcing in global commodity trade.