Informal retail continues to dominate Africa’s commerce landscape, with consumer goods worth hundreds of billions of dollars sold through its networks annually. Despite its vast potential, the industry faces persistent challenges like fragmented supply chains, unreliable delivery, and limited access to capital for shop owners.
Over the past few years, B2B retail platforms have sought to address these inefficiencies, attracting significant investments along the way. The sector remains appealing to investors, as evidenced by a recent $125 million funding round by a prominent player in the space, which has also rebranded to reflect its pan-African ambitions.
A Strategic Shift
Founded in 2015, the company initially operated as a light-asset platform connecting suppliers to retailers. However, its model evolved into a full-scale, asset-heavy operation, managing warehousing, logistics, and deliveries to guarantee service quality. Starting in Kenya, it expanded to Tanzania, Rwanda, and Uganda before entering Ivory Coast and Senegal.The rebrand symbolizes the company’s growth from a regional player to a continent-wide contender. According to its CEO, the new name embodies its mission of empowering retailers across African markets.
Transforming Supply Chains with Technology
The platform allows retailers to order products via SMS or a mobile app, ensuring same-day delivery through its logistics network. It also offers a buy now, pay later (BNPL) option, providing retailers with working capital to stock up on goods. Unlike other players in the sector that rely on external debt to finance such offerings, the company funds its BNPL option internally, though it is exploring debt financing options.
While other B2B platforms have made inroads into major markets like Nigeria, this company has focused on less saturated markets such as Ivory Coast and Senegal. The CEO explained this decision, citing robust economic growth in these regions compared to the volatility of larger markets.
Impressive Growth and a Strong Future
Since its inception, the company has facilitated over 2.5 million orders for 50,000 active retail customers. It processes more than 150,000 monthly orders, generating an annual revenue run rate of $300 million. Over the past year, its revenue has grown by 500%, marking a 1,000% increase since 2019.This growth has been supported by its universal employee equity policy, enabling all 800 staff members to hold shares in the company. Its recent funding round was led by major global investors and included participation from several notable figures in the e-commerce space.
Expansion Plans
The company plans to leverage the new funding to expand geographically and enhance its product offerings. While exploring potential entry into Nigeria and Southern Africa, it aims to strengthen its foothold in existing markets. It is also considering introducing point-of-sale systems, bill payment solutions, and social commerce features, either through in-house development or acquisitions.
This funding marks one of the largest non-fintech rounds in Africa, underscoring the vast potential of the B2B retail e-commerce sector. As it continues to innovate and expand, the company is well-positioned to transform Africa’s informal retail landscape.
