[kictanet] M-Kopa Solar fires 18% of its staff including all developers, outsources work to a foreign company

[Brian Munyao Longwe]

Hmm, they've burnt through US$ 152 million in less than 7 years... and are
downsizing instead of scaling up...I'd be a very worried investor if I had
skin in *that* game....

My two cents,

Mblayo

On Mon, Mar 12, 2018 at 11:14 AM, anyega jefferson via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Follow the money, chief, which strategy creates the lowest operating
> costs?
>
>
> And we kinda can't begrudge anyone , for seeking profit maximization,
> though i'd think Kenyan developers are the most affordable
>
> On Mon, Mar 12, 2018 at 12:04 PM, Watila Alex via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Good Afternoon,
>> Are kenyan developers to expensive or unable to meet the grade. or is
>> something else happening here
>>
>> Article from M-Kopa Solar fires 18% of its staff including all
>> developers, outsources work to a foreign company
>> <http://kenyanwallstreet.com/m-kopa-solar-fires-18-of-its-staff-including-all-developers-outsources-work-to-a-foreign-company-linked-to-new-cto>
>>
>> M-Kopa Solar fires 18% of its staff including all developers,
>> outsources...
>>
>> Kenya based pay-as-you-go solar provider M-KOPA Solar has fired
>> undisclosed number of staff including most of it...
>>
>> <http://kenyanwallstreet.com/m-kopa-solar-fires-18-of-its-staff-including-all-developers-outsources-work-to-a-foreign-company-linked-to-new-cto>
>>
>>
>>
>>
>> Kenya based pay-as-you-go solar provider M-KOPA Solar has fired
>> undisclosed number of staff including most of its developers. According to
>> people familiar with the matter who requested anonymity, the developers
>> work has now been outsourced to a foreign company that is linked to the
>> company’s new CTO.
>> The exercise, which was completed in December last year affected a number
>> of employees and some of whom were absorbed by Safaricom according to
>> the source.
>> We sought comments from the company’s CEO and Co-Founder Jesse Moore, who
>> confirmed the layoffs and explained that they were necessary due to
>> rising costs of technology and there was need to generate profits and give
>> returns to investors.
>> “I can confirm that we completed a restructuring process in December
>> 2017. This was done to reduce fixed costs and keep us on the path to
>> profitability. Overall, the company reduced headcount by 18% covering all
>> departments and all levels in Kenya, Tanzania, Uganda and UK. We are
>> outsourcing more of our technology work, maintaining a smaller in-house
>> team to work directly with outsourcing partners in Kenya and overseas.” he
>> noted.
>> He went on to say that this was the right thing for the company’s
>> long-term sustainability, “This means building a sustainable, profitable
>> company that offers impact for customers and returns for investors.”
>> On whether the company had outsourced the IT services to a company that
>> is linked to the new CTO, this is what he said.
>> “In mid-2017 our Acting CTO was seconded to us from one of our
>> outsourcing partners, when our previous CTO left the company. Our board
>> approved this and the individual is strictly recused on procurement
>> decisions with companies where could be a potential conflict of interest.”
>> The company was started by Nick Hughes, an Englishman, and his Canadian
>> co-founder, Jesse Moore. Hughes is a former executive at Vodafone, while
>> Moore was working for the GSMA Development Fund, a mobile
>> telecommunications industry group, where he was in charge of identifying
>> opportunities to make mobile services available to people in developing
>> countries. M-kopa is one of the best-funded startups in Africa having
>> raised more than $152 Million since inception in 2011. However, a big chunk
>> of this financing is in form of debt.
>>
>>
>> Regards,
>>
>> Alex
>>
>>
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>
>
> --
> Anyega M Jefferson
>
> jeffersonanyega at gmail.com
>
> 0703824326
>
> Start where you are,use what you have and do what you can.
>
>
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> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
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