Egyptian startup Capiter raises $33M to expand B2B e-commerce platform across MENA – TechCrunch

Funding startups that help manufacturers and sellers distribute products and merchants access them on a single platform is growing across Africa.

Today, Cairo-based B2B e-commerce startup Capital continues that trend by raising $ 33 million Series A round.

The investment was co-led by Quona Capital and MSA Capital. Other participating investors include Savola, Shorouk Partners, Foundation Ventures, Aseon Venture Lab and Deraiah Ventures..

Capt Was launched By Mahmoud Noah and Ahmed Noah in July 2020. Speaking with TechCrunch, CEO Mahmoud Noah says it solves problems around access and insight for capital suppliers and manufacturers..

Many Egyptian manufacturers today do not have the proper structure of the supply chain to reach traders. Noah says manufacturers can only reach 30% of traders in the market, but with Capital, that number goes between 80% and 100%.

Also, a large part of the producers’ final trade is done through traditional channels By default There is no transparency on data or market insights.

Using machine learning, Capitar says it helps these manufacturers gain a critical understanding of the markets they serve, the products they sell, and how they compete with each other..

Then for traders, Capitar faces three problems. The first is that the inconvenience traders have to deal with stopping many suppliers to find the right product. The second is transparency which includes back and forth between traders and manufacturers on prices. The third is that traders often have little or no access to working capital to get the right product and the right timing.

With Capitar, merchants can order products from FMCG and wholesalers when the company delivers them. Capitor also offers reasonable prices and matching techniques that feature a wide range of catalogs for traders..

It then gives them working capital to buy more product Is strapped With cash. Capital partners with Egypt’s local banks and the central bank to do this.

Capitar has more than 12 merchant types on its platform, including mom-and-pop stores, hotels, restaurants, cafes, electronics stores, supermarkets, grocery stores and catering companies, each with its own customized solutions..

“We can get data on the product they buy. So we offer them the best options of what they should sell, at what time and in the peak season, including when the offer is being made. All This Is customizable The solutions we offer, ”said Mahmoud Nuh.

Capt

Captor application

Company revenue Have descended Slight margin on products purchased from manufacturers and sold to merchants. Then exemptions for suppliers and commissions from working capital given to traders. Capital manufacturers and FMCG also make money by providing market information and data services.

generally The B2B e-commerce platform operates either an asset-light, inventory-heavy model. Noah tells me that the captain chose to use the hybrid model – Delivery without owning any truck and to ensure scalability Inventory ownership, especially for high turnover products that help the company with high availability and good value.

“This has enabled us to scale the business very quickly and at the same time, Effectively And Reliably. About Warehouses and trucks, we do not own them; We rent them out. We deal with third-party logistics for transportation and we handle them. ”

More than 50,000 traders and 1,000 sellers use Capiter. According to CEO Noah, the company has provided facilities up to 6,000 SKU. He also added that the company has an annual revenue target of $ 1 billion by next year.

“We are on a very good path to achieve this,” he added. “According to the terms of Team members, we have a team of over 1000 people at the moment, including warehouse, delivery, etc. So we’ve seen good traction across all the boards, “he said when asked about the captain’s traction.

Quona Capital, a co-leading investor in this round, Are known Some B2B e-commerce bets have been made in recent years, for example, Kenya’s Sokov atchch. The investment in Capital adds to the firm’s portfolio in that regard and its growing presence in the May area is its first investigation in Egypt.

In a statement, Quo’s co-founder and managing partner Monica Brand Angel said, “Capitar’s embedded finance model, with its expertise and strong user engagement, can have a dramatic impact on the financial lives of SMEs, helping to optimize their revenue. Communities thrive

“The inefficiency of the SME supply chain is huge across the Middle East. We believe The main hurdle is the lack of working capital in the system. The captain has created an asset-light route Overall Retailers and suppliers and Ease Credit to the system through comprehensive multi-product offerings such as commerce, credit lending, digital payments, bookkeeping and inventory management for SMEs, leveraging the ecosystem built by local banks and financial institutions“Ben Harburg, a partner at MSA Capital, is a global VC who has invested in fintechs such as Newbank and Clarna.

According to the company’s COO Ahmed Noah, Capiter will expand into new vertical areas such as agriculture and pharmaceutical offerings..

The co-founder brings experience from the shipping and logistics space. Both he and Mahmoud are serial entrepreneurs. The latter journey is quite pioneering, as mobility has worked in space Co-founder and COO of SWVL, an Egyptian ride-hailing company. The company recently announced a potential SPAC deal worth $ 1.5 billion and is one of the few African startups to breed the tech mafia.. Ahmed Sabah, another co-founder of the company, now runs Fintech startup Telda in the early stages.

Capitar has attracted a global team that brings the skills needed from companies like Karim and Flipkart to achieve the company’s goals..

He adds that with the team, partnering with banks and providing financial services through its hybrid model, the company has ways to stand out in competitive markets like Fatura, Bosta and Maxab..

After this investment, the company vTransiently (According to the terms of Buyer type) and geographically in the coming year.

“We want to serve every single SME in the MENA region and are expanding to Egypt and globally.” It adds that the Savola Group, one of its investors and the largest investor in FMCG products in the MENA sector, will be critical to this growth. Capitar plans to diversify its financial services.

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