To increase its market share and sustainably develop, the Egyptian company Cartona, a B2B network that links retailers to manufacturers and distributors, has received a $12 million Series A fundraising round.
Cartona is a B2B e-commerce platform that was established in August 2020 to digitise the conventional, primarily offline trade market and address supply chain and operational difficulties for the fast-moving consumer goods (FMCG) industry.
Grocery operators may digitally order the supplies they need for their stores from a selected network of suppliers, thanks to the startup’s asset-light marketplace. It presently has 60,000 users, handles around a million transactions a year, and collaborates with 200 FMCG firms, including household brands like Henkel, Unilever, Bel, and Mondelez.
SANAD Fund for MSME, Arab Bank Accelerator, and Sunny Side Ventures were also participants in the US$12 million Series A round, which followed a US $4.5 million pre-Series A that was banked in September of last year. Silicon Badia, a venture capital firm investing in international technology entrepreneurs, served as the round’s lead investor. Global Ventures and Kepple Africa Ventures, two previous investors, also increased their stake.
The funds raised will be used to accelerate Cartona’s growth across Egypt, where it hopes to cover every governorate, as well as to grow its product, technology, and services – and explore new verticals outside of FMCG.
Cartona invests in embedded finance, payments, and operational integration with all stakeholders to support the objective of a cashless world. In order to connect end customers with necessary goods at reasonable rates, this offers retailers and suppliers an integrated solution that promotes financial inclusion and allows them to manage and expand their businesses more successfully.
“We are delighted to complete our Series A fundraise. The endorsement of new investors, and the re-participation of existing investors, validates our strategy of a capital-efficient, an asset-light business model focused on enabling all stakeholders in the industry, boosting operational efficiency and underpinned by strong unit economics,” said Mahmoud Talaat, CEO and co-founder of Cartona.
“The market context for Cartona is hugely attractive, and we are just getting started. Egypt has hundreds of thousands of mom-and-pop stores that are core to our business model. We will continue empowering them via efficient and seamless solutions in their trade and financial cycle with FMCG companies and wholesalers, aligning with our mission to help people better manage and control their businesses.”
