Twiga’s pivot to asset-light model begins with acquisition of Kenyan distributors
- Twiga Foods acquired controlling shares in three local FMCG distributors: Jumra, Sojpar, and Raisons.
- The company is shifting from direct operations to a hybrid model that combines traditional distribution with technology.
- Twiga's new strategy aims to serve informal retailers while the acquired firms continue to cater to formal trade clients.
Twiga's pivot towards a decentralized operational model may offer a more sustainable path to profitability, but its success will heavily depend on effective coordination among the semi-independent businesses and the ability to adapt to the complexities of Kenya's distribution landscape. The company's cautious approach to investment and focus on leveraging existing resources reflect a broader trend in the startup ecosystem, where profitability is prioritized over aggressive growth.
