📈 Maad Raises $3.2M Seed Funding
Senegal-based B2B e-commerce startup Maad has secured $3.2M in debt-equity funding to expand within Senegal and explore opportunities in the Francophone region. The seed round was led by Ventures Platform, with contributions from Seedstars International Ventures, Reflect Ventures, Oui Capital, Launch Africa, Voltron Capital, and Alumni Ventures. Additionally, $900,000 was raised through debt financing from French DFI Proparco and local banks. This funding aims to enhance Maad’s end-to-end distribution platform, enabling informal retailers to source fast-moving consumer goods (FMCG) directly from partner suppliers.
🚚 Growth and Expansion Plans
Founded by Sidy Niang and Jessica Long in 2020, Maad originally focused on data collection before pivoting to B2B e-commerce in September 2021. The company has grown to serve 6,500 active retailers through a network of 80 suppliers, achieving a monthly GMV of $3M. “The software was providing a lot of value, and we could imagine much more value if we put all the products that small shops buy on the same platform,” said Niang. Maad plans to expand to remote areas within Senegal and enter a new Francophone market by the end of the year.
💡 Innovation in Logistics
Maad's customers place orders via call centers, field agents, or the app, with the app accounting for 75% of orders. Orders are fulfilled from Maad's warehouses using its delivery service to ensure cost-effectiveness and reliability. “We decided to bring all logistics in-house. It’s a low margin business, and this is the way to provide good service and meet reliability needs,” said Long. The startup’s control over logistics is crucial in a market where third-party providers might not meet the required service standards.
📊 Market Challenges and Opportunities
Despite the tough market conditions in the B2B e-commerce sector in Africa, Maad’s strategy has enabled it to maintain growth. Startups like Wabi, Wasoko, and MaxAB have scaled back, while Zumi and MarketForce’s RejaReja have shut down. However, Maad’s close work with suppliers, exclusive product access, and competitive pricing attract informal retailers, who play a critical role in sub-Saharan Africa’s retail landscape. Looking forward, Maad aims to introduce a buy now, pay later (BNPL) service, allowing shop owners to purchase inventory on credit.
How will Maad's expansion impact local retailers?
