💼 Investment in Cartona
In 2022, Cartona attracted global and local investors. Now, as investors show hesitation in African B2B startups, Cartona raised $8.1M. This Series A extension included $5.6M equity and $2.5M debt. Algebra Ventures led this round, with previous investors Silicon Badia and SANAD Fund for MSME also participating. Debt was provided by Camel Ventures and GlobalCorp. This brings Cartona’s total Series A to $20.1M.
📈 Growth and Expansion
Cartona, close to full EBITDA profitability, aims to expand its market share in Egypt. CEO Mahmoud Talaat mentioned the focus on FMCG and HORECA sectors. The company may also expand to Saudi Arabia and other product lines within Egypt. Cartona's annualized GMV is now about $210M, significantly up from $120M in 2022. The HORECA vertical, though small, shows potential for higher contributions to GMV.
🏢 Asset-light Model
Cartona operates an asset-light model, partnering with local suppliers instead of competing. This model helps in scalability and reaching profitability. Over 30-40% of partner suppliers’ sales come through Cartona. The company has grown to connect 180,000 retailers with 4,500 suppliers across 17 Egyptian cities. Embedded finance now constitutes over 20% of Cartona’s GMV, up from 2-3% in 2022, showing financial inclusivity.
🌍 Market Potential
Egypt’s retail market is massive, valued at $120B with the food and beverage sector worth $70B. Despite several players and significant funding, B2B e-commerce penetration remains low. Cartona covers only 2-4% of the market. CEO Talaat is optimistic about the sector’s growth. "Education and penetration of B2B e-commerce is still in its early stages. It’s coming and will add real value to retailers and suppliers," he stated.
Is the asset-light model the future of B2B e-commerce?
