Nigerian B2B e-commerce startup Sabi has laid off approximately 50 staff members, representing about 20% of its workforce, as it restructures to focus more aggressively on the traceability of commodities — a move that underscores the company’s strategic pivot toward Africa’s minerals and agricultural trade sector.
According to the news as published by TechCabal, the layoffs span multiple departments and were prompted by the company’s decision to narrow its product offering and invest more heavily in TRACE, its blockchain-based traceability platform.
“We’re doubling down on the part of our business seeing the most demand, built on the strong foundation we’ve laid since 2021 by supporting African merchants and their growth,” a company spokesperson told TechCabal.
🔍 From Merchant Tools to Traceability Infrastructure
Originally launched in 2021 to digitize logistics, inventory, and financing tools for informal merchants across Nigeria, Sabi quickly scaled to serve over 300,000 merchants and facilitated more than $1 billion in annualised gross merchandise value (GMV).
But with global attention increasingly focused on ethical sourcing, transparency, and ESG compliance, the company is now pivoting from general merchant support to a more niche but high-impact opportunity: digitising the supply chain for Africa’s extractive and agricultural industries.
At the centre of this shift is TRACE, developed in partnership with blockchain traceability platform Minespider. TRACE creates digital passports for commodities, tracking how and where goods like minerals and agricultural products are sourced, their environmental impact, and relevant certifications — offering full transparency to buyers in Europe, Asia, and beyond.
🌍 Why It Matters
The TRACE platform is designed to standardise small- and medium-scale mining operations, enabling compliance with international trade requirements. For Africa, this means more inclusion in global supply chains and a new era of digital proof of provenance for materials long plagued by reputational risks.
The pivot comes at a time when global industries — from EV battery manufacturers to fashion brands — are under pressure to vet their suppliers’ environmental and human rights records. Sabi’s solution offers a homegrown answer to that global demand.
💼 Layoffs as Part of Strategic Realignment
While painful, the job cuts are typical of fast-growing tech companies recalibrating after rapid expansion. Sabi said the decision was made to align internal resources with its long-term goals.
“While tough, this shift positions us for long-term success and ensures we remain focused on building scalable, responsible supply chains,” the company said via email to TechCabal.
Sabi is not alone in such a move. Across Africa’s tech ecosystem, startups are increasingly opting for leaner teams and sharper product focus as funding environments shift and expectations around profitability grow.
💰 A Company Still Backed by Investor Confidence
Despite the restructuring, Sabi continues to enjoy strong backing. The company raised $38 million in Series B funding in 2024, bringing its total capital raised to nearly $60 million and its valuation to $300 million, according to reports.
The TRACE pivot positions Sabi as more than just a merchant-enablement platform — it’s now a serious player in Africa’s future of responsible trade and data-powered commodity sourcing.
“Our mission remains the same,” the company said, “and we’re more committed than ever to transforming how the world sources from Africa.”