MaxAB, an Egyptian B2B e-commerce platform for food and grocery supplies, nabs $40M • TechCrunch

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last year, MaxabB2B e-commerce and distribution platform for food and groceries serving a network of traditional retailers across Egypt and Morocco, raised $55 million Series A in two Slices; the last one Accompany the acquisition From WaysToCap, based in Morocco and backed by YC. These moves indicate MaxAB’s ambition to dominate the retail and e-commerce market in Egypt and North Africa, which includes cartoon and the troubled capetireother players have raised significant capital for competition over the past year.

To continue growing due to the growing demand for food and groceries and fueling its expansion in the MENAP region, MaxAB has raised more funds, this time pre-Series A to the tune of $40 million.

Although younger than last year’s tour, CEO Bilal Al-Mughrabel He told TechCrunch that the pre-Series A was neither a bearish round nor a flat round in terms of rating. He also noted that the company raised new capital, not because it needed the money but because “there are many opportunities that we think we can take advantage of faster the more capital we have.” Asset-intensive MaxAB has raised more than $100 million in total.

Small, traditional retailers serve as the backbone of the consumer goods industry across Africa. For most B2B e-commerce platforms across the continent, groceries are one of the many consumer goods that retailers help source from suppliers. For MaxAB, this is the sweet spot. Since its launch in 2018, MaxAB has connected suppliers to more than 150,000 unique traditional retailers in the food and grocery supply chain across Egypt and Casablanca, Morocco, to deliver more than 2.5 million orders during this time frame.

MaxAB’s perspective of digging in rather than broadening its product offering also extends to how it deals with geographic expansion. After expanding B2B grocery delivery across Egypt for more than three years, it intends to leverage its network and relationships with local and multinational suppliers and complete pre-distribution in Morocco, which now accounts for 10% of MaxAB’s business, and enter Saudi Arabia by the end of 2023.

The company estimates that more than 750,000 small and diversified businesses require its services in Egypt and Morocco alone. At the same time, Saudi Arabia is attractive due to the government’s drive to digitize the informal sector and the willingness of consumer goods to explore new business models.

“We try to serve more groceries because they are the foundation of the economy we operate in before jumping into these other supply chains. Think Amazon. They kept selling books for eight years before adding another category,” said the CEO who founded MaxAB with them. Mohammed bin Halim. “In Egypt, we focused on launching the grocery supply chain and we will use the lessons learned from that to launch it in multiple markets. It is easier to launch the grocery supply chain in different markets than, say, electronics in our primary market because it is just a completely different business model that we have to recreate. Learn it from the start.”

Another growth stream for MaxAB is the fintech business launched last year, which boosts a large pool of merchants and its operational capacity to conduct cash collections. Its entry approach to providing financial services differs from the competition; It launched an invoice aggregation product — which has grown 5 times the value of transactions since the beginning of the year — instead of the BNPL product that many B2B e-commerce platforms offer to merchants first.

MaxAB didn’t take long to delve into the popular B2B fintech category, though; Last month, the platform launched a working capital product for its trading base. However, like WasokoMaxAB, another B2B e-commerce platform based in sub-Saharan Africa, has chosen not to raise debt financing to expand this part of its operations. According to Al-Mogharbel, who was a former general manager at Careem, MaxAB is currently getting a lot of supplier credit that helps it fund working capital without raising debt, at least for now. “And because the buy now, pay later product is still early days, we can still do some equity financing without having to repay debt that we won’t use in the short term,” the CEO added.

The MaxAB stock round includes an impressive list of new investors: DisruptAD, ADQ’s venture capital platform; The British international investment (BII); and Silver Lake, a private equity firm headquartered in Menlo Park — its first check of any form at an African startup. Silver Lake invested through Long term capital strategy With Mubadala Investment Company.

“We have always been proud of our ability to attract major investors to the region. Historically, since our initial round, we have always had at least one VC invested in Egypt, North Africa or Africa for the first time.” They participated in this round alongside existing investors. Others, Beco Capital and Africa Platform Capital.

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