The short: Egyptian startup Capiter is broke and laying off staff a year after raising $33 million.
Layoffs: Inside sources say Capiter fired at least 100 employees within two months. The company struggled to get new merchants for its platform while running out of money.
An Icarus tale: Last year, the company had 50,000 merchants, 1,000 sellers, and more than 6000 stock-keeping units on its platform. They were gunning for $1 billion in yearly revenue, and in typical startup culture, they hired too many people to help them reach that goal.
Sadly, the market conditions worsened in 2022, crippling multiple businesses, including Capiter.
Exit left: In a plot twist saved for the likes of Adam Neumann. The company fired the CEO and COO following allegations of embezzlement. The company’s investors have been desperately searching for buyers to take over the failing business through an acquisition or merger. Unfortunately, it’s not looking good.
Final thoughts: Capiter had a lot of promise, but with allegedly fraudulent C-suite executives and a struggling economy, it will take a big buyout to get them out of this mess. Hopefully, it’s not the C-suite that benefits when investors swoop in to save the day.
That’s it for the week. I’d love to hear your thoughts about this week’s issue. Please respond to this email or find me on Twitter @fatuogwuche :)
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