EGYPT – Capiter, a B2B e-commerce startup which brings together manufacturers, brands, wholesalers and retailers on one platform, has raised a US$33 million Series A funding round to power its rapid expansion into digital financial services and additional markets.
The company is planning on providing more digital financial services and expanding into overseas markets after raising a US$33 million Series A funding round, led by fintech-focused venture firm Quona Capital and MSA, an independent and interdisciplinary investment company.
The round also features Savola, Shorooq Partners, Foundation Ventures, Accion Venture Lab, and Derayah Ventures.
Launched in July 2020 by serial entrepreneurs Mahmoud Nouh, also co-founder of mobility startup Swvl, and Ahmed Nouh, Capiter, enables merchants to order their products through an e-commerce checkout and receive credit on their purchases.
The start-up has more than 12 merchant types on its platform, including mom-and-pop stores, hotels, restaurants, cafes, electronic shops, supermarkets, grocery shops and catering companies, each with its own customized solutions.
“As a homegrown startup, we are proud to have built such a sophisticated solution in such a short amount of time. Our entire application can be easily customised to each buyer’s needs, providing profitable insights into locations, walk-in rates, best product types, sales volume and more.
“All of this adds up to a machine-as-learning model that can actually help the merchant know which inventory items to purchase next. Combined with our value in providing merchants with access to financing through our local bank partnerships, we’ve created an economy-changing solution,” said Mahmoud Nouh, Capiter’s co-founder and chief executive officer (CEO).
The investment comes as Capiter ramps up its efforts to expand its service across Egypt and the region within 2022. It represents Quona Capital’s first investment in Egypt.
“Capiter’s embedded finance model, combined with its expertise and strong user engagement, can have a dramatic impact on the financial lives of SMEs, helping them optimise their income which helps communities to thrive.
“Quona’s investment in Capiter builds on our existing B2B e-commerce portfolio and growing presence in MENA. We look forward to helping Capiter on its journey to revolutionise the retail landscape in the region and provide a model for peers globally while increasing services for the underbanked,” said Monica Brand Engel, co-founder and managing partner at Quona Capital.
The startup provides small and medium enterprises (SMEs) with a single platform that allows retailers to order a wide range of inventory, obtain delivery, and access financing. Currently, it is serving over 50,000 merchants and more than 200 sellers.
Using machine learning, Capiter helps these manufacturers gain critical insights into the markets they serve, the products they sell and how they fair with competition.
Then for merchants, it attends to three problems. The first is the inconvenience merchants have to deal with engaging several suppliers to find the right product.
The second is transparency, which involves some back and forth between merchants and manufacturers on pricing.
The third is that merchants often have little or no access to working capital to get the right product and the right time.
With Capiter, merchants can order products from FMCGs and wholesalers while the company delivers them. Capiter also provides fair pricing and matching techniques that showcases a wide range of inventory for merchants.