Last week, Twiga Holdings, the parent company of Kenya’s B2B eCommerce platform Twiga Foods, announced a majority investment in three food distribution companies: Jumra, Sojpar, and Raisons. The move aims to expand its presence upcountry and improve its FMCG procurement operations.
The three firms serve different regions: Jumra in Nairobi and Central, Sojpar in the West, and Raisons at the Coast. Twiga says these firms will now integrate with its operations, gaining access to capital and digital tools to expand their services to Kenya’s informal retail market.
The deal comes amid persistent challenges at Twiga. Despite raising a $35 million convertible note in early 2024, the company has struggled to stabilize its business. There have been changes in strategy, including an earlier retreat from parts of the Western region, which Twiga now plans to re-enter using the partners’ infrastructure and logistics networks.
Leadership at the three firms will remain in place, including Raju Shah and Bijal Shah at Jumra, and Sunil Shah at Sojpar. Twiga says it will focus more on technology, offering digital ordering, inventory tools, and financing options to informal retailers.
As first reported by , there are claims that Twiga may be preparing to create a new company (newco) as part of a possible restructuring. The same reports allege that Twiga has been behind recent staff layoffs, raising questions about its longer-term strategy and financial stability.
Twiga has also announced several new hires across technology, supply chain, finance, and audit roles. The company’s principal backers, Creadev and Juven, continue to support its plans.
Twiga’s CEO, Charles Ballard, described the investment as a turning point. But whether the latest move will help the company regain ground in a tough operating environment remains to be seen.
