Kenya’s Twiga dismisses in-house gross sales workforce, affecting 21% of it workers • TechCrunch

Kenya’s B2B e-commerce meals distribution platform Twiga has laid off 211 of its full-time workers following restructuring that has eradicated the corporate’s in-house gross sales workforce.

The laid-off employees make up 21% of the over 1,000 workers primarily in Kenya, the place it hyperlinks farmers or agricultural producers and fast-moving shopper items manufactures to retailers.

The agritech’s CEO and co-founder Peter Njonjo instructed TechCrunch that the laid-off commerce growth representatives got the choice of working for the corporate as unbiased brokers with pay primarily based on the shoppers they purchase and gross sales they make.

The representatives signed up distributors and had been answerable for buyer relations, gathering market intelligence and selling merchandise to shoppers. Within the present proposition, the brokers will perform comparable duties.

Reviews additionally state that Twiga has restricted its employees journey allowances as a part of its cost-cutting measures.

“Twiga not too long ago launched a brand new optimized gross sales brokers’ program … the place present Commerce Growth Representatives (TDRs) will transition from everlasting workers into unbiased brokers on a 100% fee foundation,” stated Twiga in response to a TechCrunch inquiry, including that the transition of the TDRs was made according to labor legal guidelines and that impacted workers had been granted the primary proper of refusal to transition to the brand new mannequin.

The corporate says it plans to create 1,000 alternatives by means of the agent mannequin by the top of subsequent yr’s first quarter.

“This transition creates a possibility for entrepreneurship open to former gross sales brokers and most of the people. The advantage of this transition is that it permits for greater earnings primarily based on the trouble and enterprise of the agent. This mannequin has labored with different companies like insurance coverage and banking which have transitioned absolutely into Unbiased Brokers in Kenya.”

Twiga, co-founded by Njonjo and Grant Brooke in 2014, joins the rising listing of startups in Africa and throughout the globe downsizing amid a slowdown in VC funding, which has made capital for operations and development arduous to entry.

The adjustments come precisely a yr after Twiga raised $50 million in sequence C spherical to scale in Kenya and increase to neighboring international locations. The spherical was led by Paris- and Nairobi-based household workplace and personal fairness agency Creadev as TLcom Capital, IFC Ventures, DOB Fairness and Goldman Sachs’ spinoff Juven made follow-on investments.

Additionally they not too long ago launched Twiga Recent, an addition to its non-public label by means of which it is going to farm and distribute its personal agricultural produce to merchants and to take care of traceability challenges, inventory outs and value volatility — which have made it arduous for the corporate to ship on its promise of affordability and meals safety.