Egypt-based B2B e-commerce platform Cartona has raised $8.1 million in a Series A extension fundraise led by Algebra Ventures ,the leading Egyptian tech venture capital firm, with participation from Cartona’s existing investors , Silicon Badia and the SANAD Fund for MSME.
The round was raised from a strong position, with Cartona still having a significant cash position from its previous $12 million Series A funding, which was led by Silicon Badia.
Mahmoud Talaat, CEO and Co-Founder of Cartona, said: “We are delighted to complete a Series A extension which we have done from a position of strength. Our operational and financial metrics are all progressing very positively which has helped us toattract capital from existing and new investors.
“We are committed to delivering our strategy which includes transforming the traditional trade market and creating value for all stakeholders in the marketplace. Our product rollout, verticals and offerings will continue to grow as will our penetration of the Egyptian market. We have an exciting future ahead, replicating the successful execution of our business model in other regional markets – all making trading as easy and accessible as possible for retailers and suppliers,”he added.
Equity capital of $5.6 million will be utilised to further accelerate growth in Cartona’s different verticals, including FMCG and HORECA; grow its market share; establish firm foundations for regional expansion into new large markets in MENA; and explore exciting possible B2B2C opportunities.
This round includes $2.5 million in debt capital from leading debt providers Camel Ventures and GlobalCorp,as part of Cartona’s strategy to have diversified sources of capital.
Cartona’s asset-light business model, with a lean cost base and compelling unit economics, remains a major competitive differentiator , especially amid an inflationary environment , with the Company reaching experience levels on par with asset-heavy operating models.
This positive outlook follows strong financial and operational progress for the Company, and a strategy geared to an exciting future, currently, the platform has over 188,000 retailers on the platform; and a presence in 17 Egyptian cities with a growing market share.
Additionally, there’s increased digital adoption and product growth, with social engaging features enabling small retailers to pool orders, and also unlocking access to finance.
Also ,the fast-growing new HORECA vertical which Leverages Cartona’s infrastructure and learnings in its FMCG B2B core business, serves over 3,000 customers already , proving the scaling speed of asset-light models.
Omar Khashaba, General Partner at Algebra Ventures, commented: “Cartona has built an exceptionally capital efficient model that has allowed it to deliver on strong growth and profitability, even during economic headwinds. The asset light nature of its model creates scalable infrastructure that can quickly be adapted for entry into new markets and adjacencies. Cartona has also been a driving force for financial inclusion in the retail sector as more and more of its small merchants take advantage of inventory financing options.
“Mahmoud is an incredible operator and seamlessly blends deep domain expertise in the retail sector with a willingness to leverage technology to rewrite the playbook. The team’s core focus on profitability, even when capital was cheap, helped establish credibility in debt discussions with banks and NBFIs. We’re grateful for the opportunity to partner with Mahmoud and his team and believe it will go all the way.”
Founded in 2019 by Mahmoud Abdelfattah, Mahmoud Talaat, Rafik Zaher, Cartona is digitising the traditional trade market in Egypt by connecting small retailers, FMCG producers, wholesalers, and distributors on its platform.
The platform enables retailers to better manage stock and working capital via cash or credit orders improving profit margins. Cartona’s proprietary technology can be fully integrated with retailers and suppliers for ordering, inventory management, branding, embedded finance, ledger and tax.
In 2022, Cartona closed a $12 million Series A led by Silicon Badia and other investors.