Tag Archive for: Online Shopping

Andrew Stegmann

Egyptian e-Commerce Startup MaxAB Secures $6.2m Seed Funding

Egyptian B2B e-commerce marketplace MaxAB has secured seed funding of $6.2 million, one of the largest ever seed rounds raised by a MENA startup. The round was co-led by Beco Capital, 4DX Ventures and Endure Capital, with participation from 500 Startups, Outlierz Ventures and other local investors.

MaxAB connects informal food and grocery retailers with suppliers in Egypt’s under-served areas via an easy-to-use app. With this new injection of capital, the company expects to reach 50% of Egypt’s population within the next two years before expanding across different markets.

Led by Egyptian and Libyan entrepreneurs Belal El-Megharbel (previously at Careem) and Mohamed Ben Halim (Previously at Aramex), the 270-strong MaxAB team has built a stock list of over 600 products, including groceries, beverages, dairy, confectionery and non-food products.

Simplifying Egypt’s FMCG market

Using technology to close the gap between traditional retailers – over 400,000 in Egypt – and FMCGs, the Cairo based startup leverages technology to connect brands to retailers via its Android app. It is working to automate and simplify Egypt’s $45bn FMCG food retail market and has recorded 50% month-on-month growth, with 9,000 activated retailers on the platform already.

Brands using MaxAB have access to real-time demand monitoring and business intelligence tools, which improve end-to-end supply chain control, and better forecasting. Retailers in remote and under-served areas will have access to a wide variety of products, the convenience of ordering stock online in addition to second-day deliveries not to mention the added benefit of access to credit facilities.

Belal El-Megharbel, co-founder and CEO at MaxAB, says: “Nobody has addressed the underserved retailers before; retailers are faced with a limited assortment of products, the hassle of dealing with multiple wholesalers and restricted access to credit facilities. At the other end of the supply chain, the FMCGs have limited visibility on market trends, demand patterns and retailers’ business needs – leading to losing potential revenue opportunities.

“We are using data and analytics to understand purchasing and retail behaviours, as well as make the end-to-end process of brands seamless and convenient. This will enable FMCGs to make informed decisions about their purchasing, which will ultimately have a positive effect on their bottom line and catalyse one of the biggest markets in Egypt. This investment round will allow us to accelerate our growth plans and develop new products and services throughout North Africa using the first of its kind B2B e-commerce platform.”

Redefining the grocery supply chain

Yousef Hammad, managing partner at Beco Capital, says: “‘This is Sparta’ was the first impression I got when I met this team of warriors, battling one of the biggest inefficiencies on the country’s balance sheets. By leveraging technology, MaxAB is redefining the grocery supply chain in Egypt to fit the requirements of the micro retailers who make up 90% of the grocery market. The metrics they have recorded in such a short period are impressive, and we expect to continue to see double-digit growth as they scale.”

Peter Orth, co-founder and managing partner at 4DX Ventures, says: “We’ve been consistently impressed with how Belal and the rest of the team have executed, and achieved significant traction in a very short period of time. We believe that their B2B e-commerce model is the right way to serve this significant market, and we’re really excited to partner with the team to drive the next phase of growth.”

To learn more about MaxAB, and what they’re doing in the Egyptian FMCG industry, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

DHL Expands Africa eShop Online Shopping Application to 34 Countries Across Sub-Saharan Africa

Since its initial introduction in April 2019, the DHL Africa eShop app has seen its user base grow rapidly, and within the first three months of operation, it had already been rolled out to 20 countries across Sub-Saharan Africa (SSA).

DHL Express announced this week that the innovative mobile and desktop platform is now available in 14 additional countries across the region. This increases the platform’s reach to 34 countries across SSA.

Hennie Heymans, CEO of DHL Express Sub Saharan Africa, says that user uptake on the DHL Africa eShop app has been remarkable over the last five months, not only from the number of downloads, but just as importantly, from an order perspective. This is why we’re excited to launch DHL Africa eShop in Angola, Benin, Burkina Faso, Burundi, Chad, Ethiopia, Guinea, Lesotho, Liberia, Mali, Namibia, Niger, Sudan, and Togo.

“DHL adopted a phased approach for the rollout of the platform on the continent, with the initial launch implemented in 11 countries to test the market’s reaction. Within the first seven weeks, the response from the consumer market was so impressive, that the second phase was initiated – which added 9 more countries to the list. Now we are once again able to build on that momentum, with the biggest single rollout phase so far.”

The DHL Africa eShop app offers African consumers unprecedented access to international retailers on an easy-to-use platform, with great convenience and speed. It also enables many global brands to connect with a captive African market. The DHL Africa eShop enables African customers to shop directly from over 200 US- and UK-based online retailers, with purchases delivered to their door, by DHL Express. This solution was developed in partnership with Link Commerce – a division of Mall for Africa.

He adds that while Africa’s ecommerce market is still lagging behind the rest of the globe in terms of annual turnover, it may well make significant strides to catching up in the near future. “A report by Statista reveals that e-commerce in Africa was valued at $16.5 billion in 2017. McKinsey adds to this calculation by predicting that this value could potentially reach $75 billion by 2025.”

As the global leader in express logistics, DHL is well positioned to connect African consumers with these exciting global brands. “We are committed to driving e-commerce growth on the continent for etailers as they work to expose their brands to international markets and also for consumers, who want easy access to global brands,” concludes Heymans.

DHL is celebrating the launch of the new countries with a promotion of $20 flat rate shipping for up to 5 items from over 100 US/UK selected sites to all DHL Africa eShop countries. The promotion is limited to Clothing and Accessory items only, and buyers need to use coupon code CELEBRATE when completing their order.

To visit the eShop, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Nigerian E-commerce Startup Jumia Files for IPO on NYSE

Pan-African e-commerce company Jumia filed for an IPO on the New York Stock Exchange today, per SEC documents and confirmation from CEO Sacha Poignonnec to TechCrunch.

The valuation, share price and timeline for public stock sales will be determined over the coming weeks for the Nigeria-headquartered company.

With a smooth filing process, Jumia will become the first African tech startup to list on a major global exchange.

Poignonnec would not pinpoint a date for the actual IPO, but noted the minimum SEC timeline for beginning sales activities (such as road shows) is 15 days after submitting first documents. Lead adviser on the listing is Morgan Stanley.

There have been numerous press reports on an anticipated Jumia IPO, but none of them confirmed by Jumia execs or an actual SEC, S-1 filing until today.

Jumia’s move to go public comes as several notable consumer digital sales startups have faltered in Nigeria — Africa’s most populous nation, largest economy and unofficial bellwether for e-commerce startup development on the continent. Konga.com, an early Jumia competitor in the race to wire African online retail, was sold in a distressed acquisition in 2018.

With the imminent IPO capital, Jumia will double down on its current strategy and regional focus.

“You’ll see in the prospectus that last year Jumia had 4 million consumers in countries that cover the vast majority of Africa. We’re really focused on growing our existing business, leadership position, number of sellers and consumer adoption in those markets,” Poignonnec said.

The pending IPO creates another milestone for Jumia. The venture became the first African startup unicorn in 2016, achieving a $1 billion valuation after a $326 funding round that included Goldman Sachs, AXA and MTN.

Founded in Lagos in 2012 with Rocket Internet backing, Jumia now operates multiple online verticals in 14 African countries, spanning Ghana, Kenya, Ivory Coast, Morocco and Egypt. Goods and services lines include Jumia Food (an online takeout service), Jumia Flights (for travel bookings) and Jumia Deals (for classifieds). Jumia processed more than 13 million packages in 2018, according to company data.

Starting in Nigeria, the company created many of the components for its digital sales operations. This includes its JumiaPay payment platform and a delivery service of trucks and motorbikes that have become ubiquitous with the Lagos landscape.

Jumia has also opened itself up to traders and SMEs by allowing local merchants to harness Jumia to sell online. “There are over 81,000 active sellers on our platform. There’s a dedicated sellers page where they can sign-up and have access to our payment and delivery network, data, and analytic services,” Jumia Nigeria CEO Juliet Anammah told TechCrunch.

The most popular goods on Jumia’s shopping mall site include smartphones (priced in the $80 to $100 range), washing machines, fashion items, women’s hair care products and 32-inch TVs, according to Anammah.

E-commerce ventures, particularly in Nigeria, have captured the attention of VC investors looking to tap into Africa’s growing consumer markets. McKinsey & Company projects consumer spending on the continent to reach $2.1 trillion by 2025, with African e-commerce accounting for up to 10 percent of retail sales.

Jumia has not yet turned a profit, but a snapshot of the company’s performance from shareholder Rocket Internet’s latest annual report shows an improving revenue profile. The company generated €93.8 million in revenues in 2017, up 11 percent from 2016, though its losses widened (with a negative EBITDA of €120 million). Rocket Internet is set to release full 2018 results (with updated Jumia figures) April 4, 2019.

Jumia’s move to list on the NYSE comes during an up and down period for B2C digital commerce in Nigeria. The distressed acquisition of Konga.com, backed by roughly $100 million in VC, created losses for investors, such as South African media, internet and investment company Naspers.

In late 2018, Nigerian online sales platform DealDey shut down. And TechCrunch reported this week that consumer-focused venture Gloo.ng has dropped B2C e-commerce altogether to pivot to e-procurement. The CEO cited better unit economics from B2B sales.

As demonstrated in other global startup markets, consumer-focused online retail can be a game of capital attrition to outpace competitors and reach critical mass before turning a profit. With its unicorn status and pending windfall from an NYSE listing, Jumia could be better positioned than any venture to win on e-commerce at scale in Africa.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], Maarten van den Heuvel [2].