Twiga Foods’ CEO,Peter Njonjo takes 6 months’ leave following undisclosed fundraise

Chief Executive Officer of Twiga Foods, Peter Njonjo has announced that he is taking a six-month leave. This follows an announcement that the company has successfully secured an undisclosed funding round. According to a report, the co-founder said that he had decided to take a break from his CEO role to focus on personal matters after “an intense 2023”.

Although the exact value of this recent funding remains undisclosed, it is anticipated to increase Twiga’s cumulative tally of $160 million since it was co-founded by Grant Brooke and Njonjo in 2014.

In a notice released on Thursday, the company clarified that Njonjo will maintain his position on the board of directors throughout the leave period. In his absence, the responsibilities of leading operational and commercial functions will be assumed by Chief Operating Officer Laurent Gouault, while Chief Financial Officer, Zuber Momoniat will oversee finance and legal matters.

“Following the successful raise, the board supports Peter’s decision to take a sabbatical and has full confidence in the capabilities of Twiga’s recently bolstered senior leadership team,” said the firm’s board chairman Hein Pretorius.

It added, “On behalf of the board of directors, I thank Peter for his demonstrated commitment in ensuring the completion of Twiga’s recent funding round, despite the personal sacrifices required.”

On his part, Njonjo said that he would focus on personal matters, adding that “I am proud of what we have built at Twiga and the impact that Twiga has had through job creation, the reduction of agricultural waste, and ultimately the reduction of food costs.”

Read More: Kenya’s Twiga lays off 33% of its workforce, launches contractor-based logistics marketplace

The announcement by Twiga

The announcement comes at a time when the food distributor has been facing a protracted chain of operational headwinds, ranging from staff layoffs to deferred payments owed to suppliers, as well as delayed salaries for workers.

In August of this year, the company declared its intention to reduce its workforce by a third, aiming to achieve cost reductions of up to 40%. CEO, Njonjo attributed this decision to a funding shortage he claimed had affected the market.

The company now aims to hire contractors based on the number of users they serve. To facilitate this transformation, it has launched a logistics marketplace. This platform opens up its delivery services to independent truckers, allowing them to take part in the company’s delivery operations.

The upheaval at Twiga caused concern within the startup sector, given its perceived role as a market leader whose success others might have considered a benchmark.

Navigating challenges in Agritech

In the dynamic world of agritech, companies face hurdles in technological adoption, market volatility, regulatory compliance, and sustainable practices. Integrating advanced technologies, securing funding amidst market uncertainties, and navigating complex regulations are ongoing challenges.

Moreover, the sector grapples with balancing the need for increased food production with environmental responsibility. Successfully addressing these challenges requires a collaborative and innovative approach to ensure a resilient and sustainable future for the agritech industry.

That we know, Twiga has explored a number of innovative approaches to survive. And, there is yet much to hope for.

Read More: Kenya’s Twiga fires more than 200 full-time employees