Kenyan Mobility Startup Mobius Announces Liquidation Amid Financial Struggles

Liquidation Announcement

Nicolas Guibert, Mobius Director, announced in a notice, “At a meeting of the shareholders held on 5 August 2024, it was resolved to place the company under liquidation as per Section 393(1) (b) of the Insolvency Act and appoint KVSK Sastry as the liquidator to wind up the company.” The list of the creditors’ names and proxy forms will be available for inspection on August 9, 2024, at the company’s office.

The shutdown of Mobius Motors has sparked discussions on the impact of government policies on the mobility industry and the broader East African economy. Kenya’s Insolvency Act 2015 allows companies to close shop if the board determines “by special resolution that it be liquidated voluntarily.”

Targeting SMEs with Cost-Effective SUVs

Mobius Motors, which secured $56 million across five funding rounds, produced low-priced SUVs aimed at small and medium-sized enterprises (SMEs) in sectors like infrastructure, agribusiness, and supplies. These vehicles were designed to operate in remote areas with rough terrains.

Founded by British entrepreneur Joel Jackson and backed by UK-based venture capital firm Playfair Capital, Mobius launched its first stripped-down SUV model in 2014, priced at $10,000 (KES 1.3 million), significantly lower than standard SUV prices in Kenya at the time.

Financial Struggles

Following the initial model, Mobius released Mobius II in 2018 and Mobius III in 2021. Despite these new models, the company struggled financially and failed to capture a significant share of the Kenyan car market, which was dominated by second-hand imports from the United Kingdom and several Asian countries.

A creditors’ meeting has been set for August 15, 2024, at Mobius Factory in Nairobi, Kenya, to approve KVSK Sastry as the liquidator to oversee the winding-up process. This move comes after the company’s unsuccessful attempts to stabilize its operations over the past year.