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Egypt's Cartona Secures $8.1M Amidst B2B E-commerce Challenges in Africa

Egypt's Cartona Secures $8.1M Amidst B2B E-commerce Challenges in Africa

#e-commerce
#startup
#investments
#funding
#b2b
Cartona, an Egyptian B2B e-commerce platform, has successfully raised $8.1 million despite a cooling investor interest in the sector. With a focus on FMCG and HORECA, Cartona is leveraging its asset-light model to enhance efficiency and expand its market presence. Discover how this startup is navigating the competitive landscape and driving digital transformation in Egypt's retail market.

📈 Egypt's Cartona Raises $8.1M Amidst B2B E-commerce Challenges

Cartona, an Egyptian B2B e-commerce platform, has secured $8.1 million in a Series A extension, bringing its total Series A funding to $20.1 million. Despite a broader pullback from B2B e-commerce investments in Africa, Cartona's near profitability and strategic market position attracted investors like Algebra Ventures and Silicon Badia.


Key Highlights:

  • Funding Details: $5.6 million in equity and $2.5 million in debt.
  • Investment Focus: Expansion in FMCG and HORECA sectors in Egypt, with potential regional growth in Saudi Arabia.
  • Strategic Model: Cartona's asset-light approach enhances supplier efficiency without direct competition.
  • Market Impact: Over 180,000 retailers managing 40,000+ SKUs on the platform.
  • Future Plans: Increasing embedded finance in transactions and leveraging local currency financing.

🛒 Expanding Vertical MarketsCartona is exploring synergies between FMCG and HORECA, boosting its annualized GMV to EGP 10 billion ($210 million). The HORECA sector, though currently small, shows promising growth and higher profitability compared to FMCG.


📊 Growth and Financial InclusionEmbedded finance now constitutes over 20% of Cartona’s GMV, with local currency financing supporting 90% of credit orders. This financial inclusion drives growth and stability for small merchants.


🌍 Market PotentialEgypt's retail market, worth $120 billion, remains largely offline. Cartona, along with competitors, is gradually digitizing the sector, covering only 2-4% of the market. The shift towards B2B e-commerce promises significant future value.


🚀 Looking AheadCartona’s scalable asset-light model positions it well for further regional expansion and deeper market penetration. The company aims to continue enhancing its technology and financial services to support the evolving needs of retailers and suppliers in Africa.


Stay tuned as Cartona revolutionizes the B2B e-commerce landscape in Africa, driving efficiency and financial inclusion in the retail sector.



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