Lagos based startup, Gloo.ng is pivoting to a B2B e-procurement company with Gloopro as its new name.
The former consumer online retail service has called it quits on e-commerce grocery services and will now be shifting to a product that supplies large and medium corporate brands with everything from desks to toilet paper.
According to Gloopro CEO, D.O. Olusanya, the new platform will generate revenue on a monthly fee structure and a percentage on good delivered. In a chat with Techcrunch, Olusanya explained that the startup looks to expand outside of Nigeria before the end of the year as the company is in the process of raising its Series A round. The company has earlier raised around $1 million in seed capital as Gloo.ng.
The company´s CEO added that the shift to B2B commerce was prompted by Nigeria´s 2016 economic slump and a request by one of their customers. “When the recession hit it affected all consumer e-commerce negatively. We saw it was going to take a longer time to get to sustainability and profitability…then an existing client, Unilever, requested an e-procurement solution in 2017. We observed that the unit economics of that business was far better than consumer e-commerce…”he added.
Gloopro describes itself as a secure cloud-based enterprise e-procurement and commerce platform for corporate purchasing. Customers will be able to place an order from GlooPro´s interface, pay for and coordinate delivery of office supplies across multiple locations.
Gloo.ng will be rested and shut down completely.