African B2B e-commerce startup Sabi has laid off about 20% of its workforce—roughly 50 employees—as it pivots away from retail services to focus on exporting traceable, ethically sourced commodities.
Why it matters
The layoffs are part of a wider strategic shift. Sabi is doubling down on its commodity export business, launched last year under a new vertical called TRACE (Technology Rails for African Commodity Exchange).
The startup says this area has seen surging demand from international buyers seeking more transparency and ESG compliance in sourcing.
By the numbers:
- Launched in 2020 in Lagos, Nigeria
- Served 300K+ merchants by mid-2023
- $1B in annualized GMV
- Raised $38M Series B at a $300M valuation
- Now exports 20K+ tons of commodities monthly
Zoom out
Sabi began as a platform digitizing informal retailers, then expanded into an FMCG marketplace with embedded finance. But thin margins and capital-intensive logistics have plagued the B2B e-commerce space across Africa.
Unlike many of its peers, Sabi maintained an asset-light model and remained profitable. Still, the writing was on the wall: global commodity trade offers better margins and clearer paths to scale.
What’s next
Sabi has launched operations in the U.S., made senior hires, and plans to scale TRACE across more global markets. The company now facilitates exports of minerals like lithium and tin, as well as agricultural products, to buyers in the U.S., Europe, and Asia.
The bottom line
As African commerce platforms rethink long-term sustainability, Sabi is betting that infrastructure for global trade—not just local retail—will define the next era of growth. But the shift comes with growing pains.
Source: TechCrunch
