Mocality Kenya and Nigeria to shut down soon.
SA’s MIH Internet Africa is cleaning its closest. Last year it shut down its Kalahari shops in several countries.
Today reports have emerged that it’s shutting down its business directory sites dubbed Mocality with a presence in Kenya and Nigeria.
Naspers Ltd., through its subsidiary MIH Internet Africa, is shutting down operations of its digital business directory and daily deals platform, Mocality, in both Kenya and Nigeria. The closure, effective February 28, 2013, marks the end of one of Africa’s more ambitious early attempts to digitize small and medium-sized business listings on the continent.
Founded in 2009, Mocality had built a database of more than 100,000 businesses in Kenya alone and later expanded to Nigeria. The service also included Mocality Deals, a Groupon-style daily deals product that was meant to drive consumer traffic and monetization.
Despite growing user numbers, monetization remained elusive.
“We were not able to build a profitable business on top of the traffic and data we amassed,” said Mocality CEO Neil Schwartzman, citing slower-than-expected revenue growth and high operating costs.
The company said all existing advertisers with contracts extending beyond the shutdown date will receive full refunds. Digital coupons already purchased by users will remain valid until they expire or are redeemed. Business owners using the directory have been advised to back up any data before access is terminated.
Cautionary Signal
Mocality’s closure serves as a warning for digital entrepreneurs in emerging markets: user growth and data alone may not be enough to build a viable business. While Mocality offered its core directory service for free to encourage adoption, this made generating sustainable revenue more difficult, particularly in markets where online ad spending is still developing.
The move also reflects a broader strategy shift by Naspers, one of Africa’s largest tech investors, as it increasingly prioritizes ventures with more immediate monetization potential.
Regional Impact
Mocality’s exit will affect thousands of small businesses in Nairobi and Lagos that relied on the platform for visibility. The company’s early promise had attracted attention for its mobile-first approach and aggressive user acquisition tactics, which included crowdsourcing listings and offering cash rewards to contributors.
While Mocality’s shutdown ends one chapter in Africa’s digital startup story, it also underscores the importance of revenue resilience in markets where infrastructure, payment systems, and digital maturity are still evolving.