Nigerian startup Gloo.ng has exited online grocery retail. Instead, at the request of its FMCG clients, it will become an online B2B procurement service known as Gloopro. The company is also in the process of its Series A funding round.

It’s a major shift. Gloo has effectively become an office supply company for Nigerian corporates. It will bill its customers, which include Unilever and Coca-Cola, a monthly fee and a percentage-based fee on goods delivered.

The change has come as the company has struggled to compete with larger rivals Jumia and Konga, both of which retail some FMCG products as part of their overall offering. Above all, however, Gloo has found that it has been unable to stimulate enough consumer spending through the middle of what has been a five year economic downturn in Nigeria.

We also believe that Gloo’s management have realised that its funding bid was unlikely to be successful on its old model given the investment required and the potentially long time for the retailer to reach consistent and sustainable profitability. Konga and Jumia and also not profitable and the strong likelihood that a successful IPO for Jumia, whose core market is Nigeria, will lead to more intense competition in online retail is likely to have played a defining role in the decision around Gloo’s exit from grocery retailing.