African B2B e-commerce firm Sabi recently laid off approximately 20% of its workforce—around 50 employees—as part of a significant restructuring effort that shifts the company’s strategic focus toward commodity trading and traceable exports.
Confirmed by the startup in a statement, the decision follows Sabi’s earlier pivot from its original retail-driven platform toward focusing increasingly on its TRACE initiative—Technology Rails for African Commodity Exchange. This new direction aims to capitalize on the rising global demand for ethically sourced, transparent, and traceable commodities.
Initially launched in Lagos in 2020, Sabi began as a digital platform intended to help informal merchants manage and digitize their inventories amid disruptions caused by the COVID-19 pandemic. The startup soon expanded into a comprehensive marketplace for fast-moving consumer goods (FMCG) with integrated finance solutions, growing significantly in Nigeria and Kenya. By mid-2023, its platform hosted more than 300,000 merchants and had reached an annualized gross merchandise value of approximately $1 billion.
That growth trajectory enabled Sabi to secure a $38 million Series B fundraising round at a valuation of $300 million. Despite this substantial investment, the company, like many African startups active in the B2B e-commerce space, encountered numerous challenging market conditions. Tight profit margins, intense capital requirements, and demanding unit economics posed significant hurdles. Although Sabi maintained profitability through its asset-light business model—unlike some competitors—the underlying market trends clearly indicated the need for adaptation and resilience.
Acknowledging these industry pressures, Sabi formally introduced TRACE as a separate division in March, shifting its emphasis toward exporting mineral and agricultural commodities like lithium, cobalt, tin, and various cash crops. These types of exports have been increasingly attracting attention from international buyers focused on stricter ESG compliance, provenance transparency, and traceability.
Sabi now reportedly handles exports surpassing 20,000 tons of commodities per month, serving customers across major global markets including the United States, Europe, and Asia. Further evidence of its deepening commitment to commodity exports lies in the company’s recent U.S. expansion and the recruitment of key senior executives to lead this enhanced global effort.
In its official statement addressing the restructuring, Sabi described entering “its next chapter,” one marked by renewed strategic clarity and an ambitious push to meet strong international demand. The company emphasized that while the layoff decision was tough, it was necessary to align internal resources more directly with its new commercial objectives. This development highlights a broader trend among informal commerce startups on the African continent as they search for sustainable business models amid shifting market realities. Through Sabi’s strategic pivot, the viability of transitioning from local retail and inventory management solutions to global commodity trading infrastructure demonstrates an emerging path toward enhanced profitability and long-term stability, albeit one accompanied by inevitable internal recalibrations.
