NAIROBI, Kenya- Mobius Motors, the Kenya-based automaker known for its rugged, low-cost SUVs, has announced its voluntary liquidation after nearly a year of unsuccessful efforts to salvage the company.
Backed by Playfair Capital, Mobius has struggled with mounting debts, unpaid suppliers, and overdue salaries.
At a shareholders’ meeting on August 5, 2024, the resolution was made to place Mobius under liquidation according to Section 393(1)(b) of Kenya’s Insolvency Act.
Nicolas Guibert, a director at Mobius, stated, “The shareholders have resolved to liquidate the company and appointed KVSK Sastry as the liquidator to wind up operations.”
Kenya’s Insolvency Act 2015 allows companies to voluntarily liquidate if the board passes a special resolution.
This step marks the end of Mobius’ efforts to stay afloat amidst financial turmoil.
Founded in 2009 by British national Joel Jackson, Mobius aimed to revolutionize transportation in Africa with vehicles built for the continent’s rugged terrain.
The company’s first model, launched in 2014, was a stripped-down SUV priced at $10,000 (KES 1.3 million), significantly cheaper than standard SUVs in Kenya.
Despite raising $56 million across five funding rounds and backing from prominent investors like Playfair Capital, Chandaria Industries, DFC, and PanAfrican Investment, Mobius struggled to gain a foothold in a market dominated by second-hand imports from the UK, Japan, and other Asian countries.
Mobius’ production strategy relied heavily on pre-orders with a refundable deposit of $384 (KES 50,000).
However, this approach did not translate into widespread market adoption.
The company released Mobius II and Mobius III in 2018 and 2021, respectively, but both models failed to capture significant market share.
Mobius Motors began mass production in 2015, aiming to meet the needs of SMEs in infrastructure, agribusiness, and supplies operating in remote areas.
However, the company faced persistent financial challenges, struggling to settle supplier debts and pay salaries.
With no viable path to financial stability, the decision to liquidate marks the end of Mobius Motors’ journey.
The company’s legacy includes pioneering affordable, durable vehicles designed specifically for African roads, though ultimately unable to compete in a market saturated with cheaper, second-hand options.
