PwC initiated the sale of KOKO Networks assets after the Kenyan clean cooking startup failed to secure a $100M Series C round last year. Founded in 2017 KOKO raised $38M from Helios Investment Partners and Omidyar Network to push LPG canisters via a subscription model. Burn rate hit $2M a month in 2023 as customer acquisition costs soared above $50 per user in Nairobi’s informal settlements. The asset sale follows a court appointed administrator taking control in March 2024 after creditors including equity holders and local banks moved to recover dues. The fire sale includes 200 retail outlets 500 staff and a proprietary cylinder tracking IoT platform now valued below $10M. Canal+ faces fresh allegations of predatory restructuring in its pursuit of MultiChoice as South African regulators probe the French media giant’s tactics. Meanwhile Ivory Coast based Djamo eyes a $40M Series C to expand digital banking in Francophone Africa

KOKO’s implosion exposes the harsh reality of unit economics in Africa’s mass market energy sector. Subsidized LPG pricing and high customer churn revealed a model that prioritized growth over sustainability. The collapse underscores a broader trend where venture capital backed startups in Africa chase scale without nailing retention or monetization. This failure will chill investor appetite for hardware heavy energy plays and shift capital toward asset light fintech and SaaS models. Regulators may also tighten scrutiny on foreign backed startups burning cash without local economic spillovers. For Kenya’s 12M urban poor who relied on KOKO’s affordable cooking gas the liquidation means a return to dirtier and costlier energy sources. The ripple effect could stall progress toward UN SDG 7 clean energy access targets across Sub Saharan Africa

Losers KOKO’s 500 employees equity investors Helios and Omidyar and Nairobi’s low income households. Winners PwC and creditors who may recover a fraction of the $50M plus debt. Competitors like PayGo Energy and TotalEnergies’ solar LPG hybrids gain market share. Canal+ stands to benefit from MultiChoice’s distraction but risks regulatory backlash. Djamo’s $40M raise if successful positions it as a rare winner in Francophone Africa’s fintech race

Expect a 60 80 cents on the dollar asset sale with local energy firms like Vivo Energy or KenolKobil acquiring KOKO’s retail network. MultiChoice’s share price volatility as Canal+ legal battles escalate. Djamo’s Series C close by Q3 2024 with Partech Africa or TLcom leading. Kenya’s Energy and Petroleum Regulatory Authority may impose stricter licensing rules for energy startups post KOKO