Senegal-based B2B e-commerce startup Maad has secured $3.2 million in debt equity funding to strengthen growth in the West African country and explore new opportunities in the wider Francophone region. did.
The seed round was led by Ventures Platform with participation from Seedstars International Ventures, Reflect Ventures, Oui Capital, Launch Africa, Voltron Capital, and Alumni Ventures. It received $900,000 in debt financing from France's DFI Proparco and local banks.
Maad's end-to-end distribution platform enables informal retailers (mom-and-pop stores) to source fast-moving consumer goods (FMCG) directly from partner suppliers, increasing inventory driven by multiple levels of sales. You can tackle the major problems you face, such as stockouts and high inventory costs. dealer.
Sidy Niang (CEO) and Jessica Long (COO) launched Maad in 2020, initially as a data collection provider and then pivoting to building software that helps companies manage their own internal distribution . How FMCG suppliers leveraged software to address distribution challenges led to the launch of his B2B e-commerce business in September 2021.
“We were inspired when we saw clients using our software for their own distribution. This software provides a lot of value, and every small store purchases I can imagine that if you can put your products on the same platform, you can get even more value out of it,” Niang told TechCrunch.
Customers place orders through the startup's call center, field agents, or app, which accounts for the majority of orders (75%). It is then shipped from that warehouse using our own delivery service, reducing costs and ensuring consistency. That service.
“We decided to do all the logistics in-house because it is a low-margin business. We believe that is the way to provide good service and meet the reliability needs of our clients. I don't think we would be able to provide similar services if we relied on third-party providers,” Long said.
The startup has grown to serve 6,500 active retailers through a network of 80 suppliers and claims monthly GMV of $3 million. Mardo says working closely with suppliers gives them exclusive access to certain products and the ability to price their goods competitively, which is what makes unofficial retailers so attractive. said. Due to their proximity to customers, these retailers supply approximately 80% of sub-Saharan Africa's home retail and are an important channel for manufacturers to sell their products.
Startups like Maad are also working to solve the inventory sourcing and financing challenges of informal retailers, while unlocking insights that help suppliers make better business decisions. We collect data points about merchants.
Mardo's funding comes as investors continue to shy away from supporting B2B e-commerce businesses in Africa due to low margins and capital-intensive business models. As a result, companies such as Wabi, Wasoko, and Max AB have been forced to downsize. Zumi, MarketForce's RejaReja from YC and others are shutting down. This comes after the sector experienced a funding boom in 2021 and 2022.
The startup, which claims to have a first-mover advantage in Senegal, now plans to expand its reach to include remote parts of the country and is keen to enter new French-speaking markets by the end of the year. We also plan to introduce a buy now, pay later (BNPL) service that will allow store owners to access inventory on credit.