Egyptian e-commerce platform, MaxAB, has secured $6.2 million in seed funding. The Business-to-Business (B2B) online marketplace raised the funds through the participation of more than four international and local private equity firms.
The new capital infusion in MaxAB is one of the largest fundraisings by a startup based in the Middle East and North Africa (MENA) region. According to a statement by the company, the funds will enable MaxAB to reach 50% of Egypt’s population within the next two years before expanding across different markets.
MaxAB, founded by Egyptian and Libyan entrepreneurs, Belal El-Megharbel and Mohamed Ben Halim, offers groceries, beverages, dairy, confectionery and non-food products. The company, through its technology, also acts as leverage to over 400,000 traditional retailers. MaxAB has 9000 activated retailers on the platform.
Participants in the fundraising
Nairametrics was informed that the fundraising was co-led by Beco Capital, 4DX Ventures, and Endure Capital, with participation from 500 Startups, Outlierz Ventures and other local investors.
Speaking on the fundraising, Belal El-Megharbel, Co-Founder and CEO at MaxAB, said, “Nobody has addressed the underserved retailers before; retailers are faced with a limited assortment of products, the hassle of dealing with multiple wholesalers and restricted access to credit facilities.
“At the other end of the supply chain, the FMCGs have limited visibility on market trends, demand patterns and retailers’ business needs – leading to losing potential revenue opportunities.
“We are using data and analytics to understand purchasing and retail behaviours, as well as make the end-to-end process of brands seamless and convenient. This will enable FMCGs to make informed decisions about their purchasing, which will ultimately have a positive effect on their bottom line and catalyze one of the biggest markets in Egypt. This investment round will allow us to accelerate our growth plans and develop new products and services throughout North Africa using the first of its kind B2B e-commerce platform.”
Meanwhile, Yousef Hammad, Managing Partner at Beco Capital, said, “This is Sparta” was the first impression I got when I met this team of warriors, battling one of the biggest inefficiencies on the country’s balance sheets. By leveraging technology, MaxAB is redefining the grocery supply chain in Egypt to fit the requirements of the micro retailers who make up 90% of the grocery market. The metrics they have recorded in such a short period are impressive, and we expect to continue to see double-digit growth as they scale.”
Also, Peter Orth, co-founder and Managing Partner at 4DX Ventures, said, “We’ve been consistently impressed with how Belal and the rest of the team have executed and achieved significant traction in a very short period. We believe that their B2B e-commerce model is the right way to serve this significant market, and we’re really excited to partner with the team to drive the next phase of growth.”
MaxAB is a B2B e-commerce marketplace that connects food and grocery retailers to suppliers in Egypt’s most under-served geographies. It was founded in November 2018.
About 4DX Ventures
4DX Ventures is an early-stage venture firm focused on Africa. They partner with world-class entrepreneurs leveraging technology to build transformative businesses.
About Beco Capital
An early-stage venture capital firm based in the UAE is committed to reinventing the Middle East through innovation and technology entrepreneurship.