In September, news of the impending extinction of popular e-commerce website Sky.Garden caught the tech industry by surprise.
When we first highlighted the heartbreaking news, our readers reacted with understandable disbelief, hoping that there might come an investor to buy out the struggling startup.
There is now light at the end of the tunnel, after Sky.Garden CEO/CPO & Co-Founder Martin Majlund announced that they have a found a buyer for the company. Majlund in a lengthy post said that they’ve managed to preserve jobs even as the company rolls into new owners and new management.
“Sky.Garden lives on!” Majlund wrote on his LinkedIn page, “Today, I’m happy to announce that we’ve found an acquirer for the IP and the Kenyan company. Sky.Garden will live on with new owners and new management.”
The former CEO didn’t reveal who the new owners are, but there are all indications that he will have nothing to do with the company going forward.
In his rather encrypted exit message, Majlund highlighted the several highs and lows that the company has been through, confirming that several factors played out in hindering the growth of the once promising startup.
“It’s about the Journey – Not the Destination. And I know other startup founders may disagree with me on this one. But for me, it has never been about money. But the people and the process. “ He wrote.
Despite the very vibrant and promising nature of many African economies, it has not been a smooth ride for most startups. Generally, there has been increased interest from foreign investors, but only a small percentage of total global funding flows into Africa. This year has been particularly tough for startups as hard economic times led to a slow flow of investments from VCs.
In 2021, African startups raised only raised just 0.8% of all venture dollars although it was the best year for the industry as investments hit $5.2 billion, according to a report by Crunchbase.
This year, startups in Kenya accumulated nearly one billion dollars ($820 million) in the first half of 2022. It has been a year of mixed fortunes, as some gained significantly while others lost, such as Kune Foods which was forced to shut down.
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