E-business venture Sabi announces job cuts for 20% of its workforce, focusing its operations on international commodity trading instead.
**Nigerian E-Commerce Startup Sabi Pivots to Exporting Traceable Commodities**
Sabi, an African B2B e-commerce startup based in Lagos, Nigeria, is repositioning its business to focus on exporting traceable, ethically sourced commodities. This strategic shift comes in response to growing global demand and regulatory pressure for transparency and compliance in supply chains.
The new vertical, called TRACE (Technology Rails for African Commodity Exchange), digitises and standardises the recording and verification of commodities from small-scale mines and farms across Africa. This traceability technology supports scalable, responsible supply chains and aligns with new global regulations, such as the US Inflation Reduction Act and EU policy mandates on supply chain transparency.
Sabi's pivot is driven by the opportunity to build digital supply chain infrastructure focused on compliance and trust. The company aims to serve global supply chains reliant on digital compliance infrastructure and position itself for long-term success in a high-growth niche within global trade.
This repositioning signals a move from broad B2B merchant e-commerce services towards specialized supply chain intelligence and export verification infrastructure pivotal for Africa’s trade digitisation and ethical commodity supply.
The demand for Sabi's commodity exports has surged from international buyers seeking more transparency and ESG compliance in sourcing. As a result, Sabi is now facilitating exports of minerals like lithium and tin, as well as agricultural products, to buyers in the U.S., Europe, and Asia.
Sabi has raised $38 million in Series B funding at a $300 million valuation, and the company remains profitable despite its shift in focus. However, the strategic refocusing of resources has led to layoffs, with around 20% of Sabi's workforce—approximately 50 employees—being let go to realign resources towards this promising segment.
Despite the challenges, Sabi remains committed to transforming African trade by building digital infrastructure that fosters trust and compliance across the continent's informal and formal export sectors. The company is currently active in Nigeria, the Democratic Republic of Congo, Tanzania, and Zambia, processing over 20,000 tons of minerals monthly. Sabi is targeting significant growth, aiming to expand its footprint to capture more value in Africa’s mineral export market by enabling traceability and ethical sourcing at scale.
Sabi has made senior hires to support its global expansion and has launched operations in the U.S. The company served over 300,000 merchants by mid-2023, with an annualised GMV of $1 billion. Sabi was launched in 2020 and is scaling its commodity export business, TRACE, across more global markets.
Infrastructure for global trade, not just local retail, is seen as a key driver of growth for Sabi. The company's shift towards exporting traceable, ethically sourced commodities offers better margins and clearer paths to scale for Sabi, positioning it well for success in the global commodity trade.
- The technology-driven platform, TRACE (Technology Rails for African Commodity Exchange), developed by Sabi, digitises and standardises the recording and verification of commodities from small-scale mines and farms across Africa.
- Sabi's focus on exporting traceable, ethically sourced commodities aligns with new global regulations such as the US Inflation Reduction Act and EU policy mandates on supply chain transparency, demonstrating the company's commitment to transparency and compliance through technology.
