Cairo-based B2B ecommerce marketplace Fatura has raised $3 million in a pre-Series A co-led by Sawari Ventures and Arzan Venture Capital, it announced today. Egypt Ventures, EFG-EV, Cairo Angels, and Khwarizmi Ventures also participated in the deal. The startup has previously raised an undisclosed amount of money in a seed round in July 2020.
Founded in 2020 by Hossam Ali, Ahmed Anwar, and AbdAllah Mohebeldin – and later joined by Ahmed Al Bakary, Fatura sells inventory to grocery retailers through its mobile app using a network of FMCG manufacturers and wholesalers. It uses an asset-light approach and doesn’t own any inventory. The orders are shared with the manufacturers and wholesalers who fulfill them.
Hossam Ali, the co-founder and CEO of Fatura told MENAbytes that they currently have over 500 sellers on the marketplace including wholesalers, distributors, and manufacturers who have served 25,000 retailers through Fatura’s platform in 20 governorates across Egypt.
Interestingly, most of the retailers using Fatura are outside of Cairo and Giza. These two governorates account for less than 40 percent of the startup’s userbase. Fatura is currently in the process of expanding beyond FMCG products and grocery retailers. It is also working to launch additional services like digital payments to serve its retailers better.
“Our strategy was to do a quick land grab of wholesalers and retailers across Egypt (horizontally across governorates) and now we are focusing vertically on getting the most value out of the regions we cover in terms of active customers, GMV, retention, etc,” noted Hossam in a conversation with MENAbytes.
Speaking about how they ensure the quality of service when they don’t manage the inventory and logistics, he explained that their sellers can use Fatura’s mobile app to manage and update stocks, prices, offers, and receive orders. “We also monitor the fulfillment rates of suppliers and their compliance with the set delivery time – and measures retailers’ satisfaction on an ongoing basis.”
Commenting on the opportunity in a statement, he added, “There is a great opportunity in the B2B space in Egypt, that is growing as the players are becoming digitally mature and ready. Collectively, the digital B2B players in the FMCG space capture less than 5% of the market, and there is a long way to go. Our conviction is to stay asset-light, be inclusive to all the industry stakeholders, and to attract the best-on-ground acquisition force across the country.”
Hany Al-Sonbaty, the Managing Partner at Sawari Ventures, said, “Fatura’s existing infrastructure has enabled them to expand their offerings to new customers. The team has demonstrated that they have the vision to identify new opportunities and the prowess and agility to implement and deliver. We are excited to become part of their journey.”
Hasan J. Zainal, the Managing Partner at Arzan Venture Capital, said “Being part of Fatura’s success story is exciting for us. The FMCG industry is in need of Fatura’s product, which will solve many challenges faced by small retailers. Also, its fintech angle complements the core product and enables retailers to scale their business further with less working capital constraints.”
Last updated: 9:30 AM GMT.