Informal retail channels account for about 80% of household retail transactions in sub-Saharan Africa. Despite their significance, these channels often grapple with persistent challenges, such as stockouts and financing hurdles, which hinder growth and profitability. Seeking to address these issues, Betastore, a B2B retail marketplace, is driving change in Nigeria, Ivory Coast, and Senegal.
The Betastore platform connects informal retailers directly to manufacturers and distributors, cutting out middlemen and ensuring competitive pricing. Additionally, it collaborates with logistics partners to guarantee goods are delivered within 24 hours. With the recent closure of a $2.5 million pre-Series A funding round, supported by investors such as 500 Global, VestedWorld, and Loyal VC, Betastore plans to expand its operations. To date, the company has raised $3 million in funding.
Expansion and Strategic Growth
Betastore’s CEO, Steve Dakayi-Kamga, revealed plans to extend operations to Ghana, Cameroon, and the Democratic Republic of Congo before year-end. The company also aims to scale operations in its existing markets by reaching 100 cities. “Our asset-light model allows us to scale efficiently while optimizing technology to connect retailers with the nearest distributors,” said Dakayi-Kamga.
This approach eliminates the need for warehouses or proprietary delivery fleets, reducing operational overheads and logistics complexities for retailers. On average, Betastore users place 4.4 orders per month, benefitting from streamlined inventory management and reduced logistics costs.
Introducing Financing Solutions
Betastore plans to launch a financing solution in the coming months, following a pilot program involving 200 retailers. This buy-now-pay-later (BNPL) initiative will be based on retailers’ sales performance and aims to empower them to increase their purchasing capacity. The company will partner with fintech firms and banks to roll out this feature, leveraging its technology to provide critical data for lenders.
“Our partners are eager to support small businesses but often lack the necessary data to make informed decisions. Betastore bridges that gap by offering insights into retailers’ operations, enabling financing opportunities,” said co-founder and COO, Leo-Armel Tchoudjang.
The financing solution will integrate with Betastore’s wallet feature, allowing retailers to manage loans, deposit funds, and separate business finances from personal money. The wallet is also connected to the banking system, enabling seamless transactions with banks and agency platforms.
Impact and Future Plans
Since its launch in 2020, Betastore has achieved significant growth, increasing its customer base and revenue by 10x and 12x, respectively. With plans to expand into more African markets and introduce the BNPL product, the startup is poised to make a lasting impact on sub-Saharan Africa’s retail landscape.
Betastore’s broader mission is to enhance access to goods and services for informal retailers and their customers. “We envision merchants as agents of transformation, making essential goods and services more accessible. Our journey began in Nigeria, and we’re steadily expanding toward becoming a pan-African player,” said Dakayi-Kamga.The informal retail sector remains a vital component of sub-Saharan Africa’s economy, contributing between 20% and 50% of the region’s GDP. By addressing key challenges in this space, Betastore is positioned to unlock new growth opportunities for retailers and drive economic development across the continent.
