EGYPT – Fatura, a Cairo-based ecommerce marketplace connecting FMCG wholesalers to retailers, has secured US$3 million in a pre-Series A round led by Sawari Ventures and Arzan Venture Capital.
The round also saw participation from Egypt Ventures, EFG-EV, Cairo Angels, and Khwarizmi Ventures.
The boost came after the company raised an unknown amount of money in a seed round in July 2020, led by Disruptech, Egypt’s first fintech-centric VC Fund, with participation from EFG EV, and Cairo Angels.
With the new financing, Fatura will be able to expand its services beyond e-commerce and digital financing, allowing it to optimize the interchange of products, money, and information in the B2B environment while concentrating on ease and user experience.
“There is a great opportunity in the B2B space in Egypt, that is growing as the players are becoming digitally mature and ready.
“Collectively, the digital B2B players in the FMCG space capture less than five per cent of the market and there is a long way to go. Our conviction is to stay asset-light, be inclusive to all the industry stakeholders and to attract the best on-ground acquisition force across the country,” Hossam Ali, Fatura’s CEO, said.
The B2B marketplace began in late 2019 and has already exceeded EGP1 billion (US$63.87m) in annual GMV, and that’s just in the FMCG industry.
“Collectively, the digital B2B players in the FMCG space capture less than five per cent of the market and there is a long way to go. Our conviction is to stay asset-light, be inclusive to all the industry stakeholders and to attract the best on-ground acquisition force across the country.”Hossam Ali – Fatura’s CEO
The Fatura smartphone app links wholesalers and manufacturers with retailers across a wide range of sectors. The company has been functioning in the FMCG market and is now experimenting with other industries.
“Fatura’s existing infrastructure has enabled them to expand their offerings to new customers.
“The team has demonstrated that they have the vision to identify new opportunities and the prowess and agility to implement and deliver. We are excited to become part of their journey,” commented Hany Al-Sonbaty, Managing Partners at Sawari Ventures.
Fatura has established a solid basis and infrastructure for monetizing its data and services.
The company is planning to avail new services to serve the many actors in the company’s ecosystem, such as manufacturers, wholesalers, and retailers, as well as offer diverse digitisation projects with an emphasis on digital payments and regional development into new markets.
“Being part of Fatura’s success story is exciting for us. The FMCG industry is in need of Fatura’s product, which will solve many challenges faced by small retailers,” Hasan J. Zainal, Managing Partner of Arzan Venture Capital said.
“Also, its fintech angle complements the core product and enables retailers to scale their business further with less working capital constraints.”
The firm has expanded its reach to more than 25,000 stores and 500 wholesalers and manufacturers throughout 20 governorates, exchanging more than 10,000 SKUs in the last year.
Fatura also pierced the surface of financial services by offering digital lending with a focus on retail financing, with plans to expand its retail financing offerings in the near future.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE