MarketForce, a Kenyan retail distributor has raised $40 million Series A funding to facilitate merchant inventory financing and expansion beyond Nigeria and Kenya as it looks to enter more markets in East and West Africa.
The new funding which is a combination of debt and equity comes seven months after the startup raised $2 million pre-Series A funding, and was led by V8 Capital Partners, a London and Lagos based African-focused investment vehicle.
Other participants include Ken Njoroge, Cellulant co-founder who joins the MarketForce board as chairman as well as Ten13 VC, SOSV Select Fund, Vu Ventures, Vastly Valuable Ventures, Uncovered Fund, while existing investors that took part in the round include Reflect Ventures, Greenhouse Capital, Century Oak Capital and Remapped Ventures.
The startup also said it will introduce buy-now-pay-later (BNPL) option to enable easy access to fast-moving consumer goods (FMCGs) on credit especially as it looks to enter additional markets in East and West Africa.
Leveraging on its merchant super app, RejaReja, it also wants to enable digital payment for informal trader from sourcing goods to finalizing payment as well as accessing loans.
What they are saying about the funding
Speaking on the development, Tesh Mbalu, CEO and Co-founder, Jambo, said the mission of the startup is to help small businesses grow by providing loans for them to access goods through the merchant inventory financing; an overdraft facility that allows businesses to order goods and pay later after selling them.
Mbaabu also said that the startup is very deliberate about extending working capital, the reason it raised some debt whilst also adding that it is looking at fintech angle as its big frontier for the next phase of business.
According to him, MarketForce is also working to bring insurance, savings and investment on board to strengthen financial services in Africa.
Tobi Oke, V8 Capital General Partner and member of the MarketForce board stated that MarketForce demonstrates a triple threat with regards to returns. He describes the team as a strong executive team with an amazing track record with an expansive untapped market of informal retailers in the continent.
