MarketForce, a Kenyan-founded retail B2B and distribution platform, has raised $40 million in Series A funding. This investment will enable the company to introduce inventory financing options and expand its operations across East and West Africa.
Operating in multiple markets, including Kenya, Nigeria, Uganda, Tanzania, and Rwanda, MarketForce’s mission is to digitize the informal retail sector, which accounts for about 80% of household retail in sub-Saharan Africa. Through its flagship app, RejaReja, informal merchants can source fast-moving consumer goods (FMCGs) directly from manufacturers and distributors, pay digitally, accept bill payments, and access loans tailored to their businesses.
Launched in 2020, RejaReja addresses key challenges faced by informal traders, including stockouts, earnings instability, and limited access to financing. By leveraging data from merchants’ transactions, MarketForce helps create credit profiles, which are essential for securing loans. The app’s marketplace also ensures competitive pricing by eliminating intermediaries and guarantees next-day delivery of goods.
Empowering Merchants with Buy Now, Pay Later (BNPL)
As part of its expansion strategy, MarketForce plans to introduce BNPL options, allowing merchants to stock inventory on credit and pay later after sales. The company’s CEO and co-founder, Tesh Mbaabu, highlighted the success of a recent pilot program, which saw order stock value triple.
“Our goal is to enable SMEs to grow. By providing them with flexible financing options, we empower them to access goods and expand their businesses,” said Mbaabu.
Funding and Growth
The $40 million round comprises an equal mix of debt and equity, bringing MarketForce’s total funding to $42.5 million. This round was led by V8 Capital Partners, with participation from investors such as Ten13 VC, SOSV Select Fund, and others. Notably, Ken Njoroge, co-founder of Cellulant, joined MarketForce’s board as chairman.
The funding will support MarketForce’s plans to double its workforce to 800 and increase the number of merchants using RejaReja to 250,000, up from 5,000 just a year ago.
Future Vision
MarketForce is committed to becoming the go-to digital platform for informal retailers. Beyond inventory financing, the company plans to introduce additional services like insurance, savings, and investment opportunities.
“The vision is to create a super app for the informal market. We want merchants to have a single platform that offers all the financial and digital tools they need to thrive in the modern economy,” Mbaabu stated.
MarketForce’s innovative approach aligns with the broader trend of streamlining Africa’s informal retail supply chain. Competitors like TradeDepot and Sokowatch are also making strides in this space, highlighting the immense potential for growth in a market that remains largely untapped.
With over 87,000 orders processed on RejaReja and a projected $60 million in annualized transaction volumes, MarketForce is well-positioned to drive the digitization of Africa’s informal retail sector and create a sustainable future for millions of small traders.
