Sabi Lays Off 50 in Strategy Shift

Sabi Shifts Focus to Global Commodity Trade, Lays Off 20% of Staff

Fast-growing African e-commerce startup Sabi is making a bold shift in its business strategy. The company recently laid off about 50 employees — roughly 20% of its workforce — as it moves away from its original retail focus to double down on global commodity exports.

This decision is part of a broader restructuring aimed at aligning the company’s resources with its new direction. Sabi now wants to concentrate on TRACE (Technology Rails for African Commodity Exchange), a new business arm launched earlier this year. TRACE focuses on exporting traceable and ethically sourced commodities like lithium, cobalt, tin, and agricultural products to international markets.

Founded in Lagos in 2020, Sabi initially helped informal retailers digitize their sales and inventory systems during the COVID-19 pandemic. The platform quickly evolved into a digital marketplace for fast-moving consumer goods (FMCGs) and offered embedded financial services. It scaled operations in Nigeria and Kenya, reaching over 300,000 merchants and generating over $1 billion in annualized gross merchandise value (GMV) by mid-2023. That growth helped it raise $38 million in Series B funding, valuing the company at $300 million.

Despite its impressive growth, Sabi — like many other African B2B e-commerce startups — faced challenges. Operating in a market with razor-thin margins and high capital demands made profitability difficult. However, Sabi took a different approach. It adopted a lean, asset-light model and managed to stay profitable while others burned through investor cash.

Now, Sabi is embracing what it sees as a more sustainable and profitable path: the global commodity trade. With TRACE, Sabi exports more than 20,000 tons of minerals and agricultural goods each month to buyers in the U.S., Europe, and Asia. The company has also set up operations in the U.S. and brought in senior executives to support its international push.

“We’re doubling down on the part of our business that’s growing fastest,” the company said in a statement. “This next chapter builds on the solid foundation we’ve laid since 2021 by supporting African merchants. While it was a tough decision to restructure, we believe this shift better positions us for long-term impact and profitability.”

Sabi’s pivot highlights a growing trend in African tech: moving beyond local retail solutions and positioning as infrastructure providers for global trade. It's a smart move for companies seeking better margins and long-term stability — even if it means making hard internal changes along the way.