Egyptian B2B platform Cartona raises $12mln to finance growth

Egypt – Cartona, a B2B commerce market platform, has introduced the profitable closing of its $12m Collection A fundraise.

The spherical was led by Silicon Badia – the enterprise capital agency investing in international know-how entrepreneurs, along with the lively participation of the SANAD Fund for MSME, an influence funding fund devoted to supporting entrepreneurs within the Center East and North Africa.

Arab Financial institution Accelerator and Sunny Facet Ventures additionally participated, alongside present buyers – International Ventures and Kepple Ventures – who joined Cartona’s journey final yr, doubled down on this spherical.

Proceeds shall be used to turbo-charge Cartona’s growth throughout Egypt – to cowl all governorates, develop its product, know-how, and providers – and discover new verticals past FMCG.

Cartona embraces a cashless society imaginative and prescient, investing in embedded finance, funds, and operational integration with all stakeholders. This supplies retailers and suppliers with an built-in resolution boosting monetary inclusion enabling them to run and develop their enterprise extra effectively, and attain end-consumers with important merchandise at reasonably priced costs.

Cartona’s mannequin is asset-light, not proudly owning a single product or warehouse or car. This permits Cartona to execute its technique of digitizing Egypt’s conventional, largely offline commerce market by eliminating inefficiencies throughout the provision chain – in a really capital-efficient approach – whereas enabling seamless monetary providers’ options to an underserved community of a whole lot of 1000’s of outlets.

Mahmoud Talaat, CEO and co-founder of Cartona, commented: “We’re delighted to finish our Collection A fundraise. The endorsement of recent buyers, and re-participation of present buyers, validates our technique of a capital-efficient, asset mild enterprise mannequin centered on enabling all stakeholders within the business, boosting operational effectivity and underpinned by robust unit economics.”

He added: “The market context for Cartona is massively engaging, and we’re simply getting began. Egypt has a whole lot of 1000’s of mom-and-pop shops who’re core to our enterprise mannequin. We’ll proceed empowering them by way of environment friendly and seamless options of their commerce and monetary cycle with FMCG corporations and wholesalers, aligning with our mission to assist folks higher handle and management their companies.”

Cartona is rising quickly and sustainably. It has scaled over a brief time period to at the moment course of round 1m transactions yearly, with ample room to develop. Cartona has 60,000 customers, works with 200 FMCG corporations – together with blue-chip names Henkel, Unilever, Bel, Mondelez; and 1,500 distributors and wholesalers.

The Egyptian market alternative for Cartona is compelling. The general retail market measurement is $120bn, with the Meals and Drinks market value $70bn. There are over 400,000 outlets and 1000’s of worldwide and native manufacturers throughout Egypt, with the sector rising yearly by 8%.

Namek T. Zu’bi, Founding Managing Companion at Silicon Badia, mentioned: “We’re thrilled to accomplice with the Cartona group to assist them proceed to disrupt the $120bn Egyptian retail market by its B2B know-how platform and embedded monetary service choices. The market is hungry for these kind of options and we consider Cartona’s asset-light method will permit them to function many market contributors as potential in a extremely environment friendly method.”

Daniela Beckmann, SANAD Chairperson, commented: “We’re extremely pleased with this transaction as it’s the first funding of SANAD ESF II in Egypt, persevering with the success of ESF I investments made within the nation. By offering each financing and a software program tailor-made to the market, Cartona’s digital platform is supporting modern MSME retailers throughout Egypt, which can tremendously contribute to SANAD’s mission of pursuing progress and employment creation throughout the area.”

The most recent Collection A funding spherical comes lower than a yr after Cartona raised $4.5m in a pre-series A spherical led by International Ventures.