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Nigerian e-commerce platform DealDey has confirmed it has reduced headcount in certain departments of its business – primarily warehousing and logistics – as it looks to introduce “better efficiency” and reduce delivery times.

Things had appeared to be going smoothly for DealDey, which claims to currently have 1.5 million subscribers and recently rolled out new platforms in a bid to challenge rivals Jumia and Konga on the back of a US$5 million funding round from AB Kinnevik in February.

However, like fellow Nigerian startups iROKOtv and Jumia, it is now scaling back on staff. Co-managing director Etop Ikpe refused to confirm rumours DealDey’s team had been reduced by 60 per cent, but did say the startup had reduced headcount in certain departments to meet organisational objectives.

“We are focused on enhancing merchant and customer engagement; through our 3 platforms; DealDey, LYF.ng and Promohub.ng,” Ikpe said.

“We aim to reduce merchant churn by 50 per cent over the next three months as well as increase our average return rate by 100 per cent. We have seen great results on both metrics since we initiated our strategic change.”

DealDey has as a result reduced its involvement in order fulfilment and logistics, instead developing a network of outsourced order fulfilment partners. “We are continually growing that network to support efficient product delivery through our platform,” Ikpe said.

The startup’s primary goal is to achieve better efficiency for customers by reducing its average delivery time by 70 per cent. Ikpe said it has already seen a 50 per cent reduction in the last three weeks.

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