African B2B e-commerce startup Sabi has laid off approximately 20% of its workforce, around 50 employees as part of a major strategic pivot from its retail marketplace roots to focus more aggressively on commodity exports.
The company confirmed the layoffs on Thursday, citing a broader restructuring effort aimed at aligning its operations with growing global demand for ethically sourced, traceable commodities. This shift is being driven by TRACE (Technology Rails for African Commodity Exchange), a new business vertical launched by Sabi earlier this year.
Founded in 2020 in Lagos, Sabi initially offered digital tools for informal retailers to manage inventory and sales during the COVID-19 pandemic. It later evolved into a fast-moving consumer goods marketplace with embedded financial services, expanding across Nigeria and Kenya. By mid-2023, the company reported over 300,000 merchants on its platform and $1 billion in annualized gross merchandise value, leading to a $38 million Series B funding round and a $300 million valuation.
Despite its asset-light and profitable model — a rarity among African B2B e-commerce players — Sabi faced industry-wide challenges, including tight margins and capital constraints. Its pivot reflects a changing landscape, where sustainable growth increasingly lies in export-focused operations with stronger economics.
Since launching TRACE, Sabi has begun exporting over 20,000 tons of agricultural and mineral commodities monthly — including lithium, cobalt, tin, and various cash crops — to buyers in the U.S., Europe, and Asia. The company has also expanded operations to the U.S. and made senior hires to support the transition.
“Sabi is entering its next chapter, with a focused commitment to commodity trade and traceability for global customers,” the company said in a statement. “We’re doubling down on the part of our business seeing the most demand… To align with this momentum, we’ve made the difficult decision to restructure parts of our team.”
The shift highlights a broader trend among African commerce platforms: moving beyond informal retail support to become infrastructure players in global trade. While the new direction offers better margins and long-term viability, it also brings internal challenges, as Sabi’s recent layoffs demonstrate.
