NAIROBI, Kenya- In a sobering turn of events, Nairobi-based agri-tech startup Gro Intelligence has announced it is shutting down.
This comes on the heels of a tumultuous year marked by emergency funding rounds, a CEO ousting, and severe financial strain.
Founded in 2012 by former energy commodity trader Sara Menker, Gro Intelligence was once a beacon of promise, offering AI-powered insights on climate risk and food production. So, what went wrong?
The Downward Spiral
The news of Gro Intelligence’s closure follows months of struggle.
Despite raising an emergency funding round in March 2024, the company couldn’t secure further capital from investors.
Reports surfaced in February 2024 that the startup was having trouble meeting payroll and pension obligations, despite raising over $125 million throughout its existence.
The company’s troubles were compounded when it laid off 60pc of its staff in March, followed by a second wave of layoffs affecting employees in New York and Nairobi.
In a bid to stabilize the sinking ship, Gro’s board replaced founder and CEO Sara Menker in February 2024. The efforts, however, proved too little too late.
The company is now under investigation by the Securities and Exchange Commission (SEC) for alleged fraud, and former employees have filed lawsuits over labor violations after being laid off without notice.
A Promising Start
Gro Intelligence was initially hailed for its innovative approach to collecting data from governments, financial markets, and weather agencies, providing actionable insights for agricultural companies.
Among its high-profile clients was Unilever. The startup raised significant capital, including an $85 million round in 2021.
At its peak, Gro was valued at $850 million and was seen as a potential game-changer in the agri-tech space.
The Harsh Reality of Startup Life
Gro’s collapse underscores the challenging landscape for startups, particularly in Africa.
The company’s failure is attributed to a tough fundraising environment and issues with product-market fit. Gro joins a growing list of well-funded African startups that have shut down in 2024, including iProcure, a B2B agricultural inputs distributor, and Copia, a B2C e-commerce platform.
The demise of Gro Intelligence has sent ripples through the African tech ecosystem, which has heavily relied on foreign investment.
These shutdowns highlight the vulnerabilities of African startups in a global market that is increasingly cautious about funding.
