Evaluating only AbidjanTech’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
MILESTONE
CRISIS
SHUTDOWN
Full Analysis
Free · no account needed
Documented cause
AbidjanTech built a general e-commerce marketplace in Ivory Coast targeting Abidjan's growing middle class and diaspora shoppers. Early GMV was impressive for the market but cash-on-delivery fraud — customers ordering goods and refusing to accept delivery — ran at 28%, one of the highest in West Africa. Returns were rarely recovered. The company tried introducing mobile money (MTN MoMo and Orange Money) as a prepayment option, but the conversion rate from COD to prepayment was below 12%. With per-order economics deeply negative including delivery and returns, the company burned through $2M in angel funding before closing.
Lesson
“Mandate mobile money prepayment from day one in high-COD-fraud markets — COD-first with prepayment as upsell is a slow path to unprofitability.”