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Copia Global, a Kenyan e-commerce startup, expands into Uganda

Copia Global, a Kenyan e-commerce startup, expands into Uganda. 

Copia Global, a Kenyan e-commerce startup, expands into Uganda

Copia Global, a Kenyan eCommerce startup, has announced the expansion of its services to Uganda. After establishing a foothold in Kenya, where the startup claims to serve over one million customers, the startup is now eyeing Uganda's growing middle class.

Copia Global operates in a manner distinct from that of the majority of eCommerce platforms. Rather than relying on a website, it relies on a nationwide network of agents. When customers require an item, they visit an agent to place their order using a digital device.

When the customer returns to pick up their order, the agent sends it to Copia Global, who processes and delivers it within two days. By utilizing this model, the company can reach out to those who lack access to digital devices or do not have access to the Internet. Interestingly, it accomplishes all of this through the use of USSD technology.

While the startup does have a website, it is primarily targeted at urban customers. This enables them to place orders for goods and have them delivered to residents of rural communities served by Copia Global agents.

This model is ideal for Uganda, where, despite the fact that 47% of the population owns a mobile phone, only 12 million Ugandans have access to the Internet. However, its hybrid model of online and offline sales is not novel. Jumia, the eCommerce giant, partnered with Vivo Energy in 2019 to use its service stations as customer pickup and drop-off points. 

 

Uganda has one of the world's fastest growing middle classes

According to Tracey Turner, Founder and Chairman, "Uganda has one of the world's fastest growing middle classes, with a hardworking population and a vibrant entrepreneurial culture." Copia was created with the express purpose of serving this rapidly growing but underserved consumer segment that desires access to high-quality products at the best prices.”

Crunchbase reports that the startup has raised $53 million from investors including LGT Lightstone, Endeavor Catalyst, and Goodwell Investments.

African eCommerce startups have primarily struggled to demonstrate a viable market for their services, with Konga being sold in 2018 and Jumia struggling despite its NYSE listing. While models such as Copia Global's that cater to low-income consumers may appear to be the way to go, eCommerce startups must serve a larger market in order to generate the same revenue as the giants.

 

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