In 2022, when Egyptian B2B e-commerce platform Cartona last secured funding, both global and local investors were eager to invest in African startups addressing supply chain and operational challenges within the fast-moving consumer goods (FMCG) industry for retailers and suppliers.
However, the landscape has shifted since then, with investors being less enthusiastic as various startups across Africa—whether asset-light or asset-heavy—have faced challenges, resulting in closures, downsizing, and mergers.
Despite this, Cartona has managed to secure additional funding of $8.1 million in a Series A extension, with the round led by Egyptian VC firm Algebra Ventures. This brings Cartona’s total Series A funding to $20.1 million, with plans to utilize the capital to expand its market share in Egypt, particularly in the FMCG and HORECA sectors, and potentially explore new regional markets.
Cartona initially launched as an asset-light B2B platform connecting FMCG suppliers and wholesalers with retailers. By focusing on enhancing technology, user experience, and fulfillment rates, the platform has been able to compete with asset-heavy models, resulting in significant growth over the years.
The asset-light model has played a crucial role in Cartona’s path to profitability, as it leverages Egypt’s informal market network to enhance efficiency rather than compete against existing players.
Cartona’s annualized gross merchandise volume has seen substantial growth, with plans to further expand its reach in the HORECA vertical. The platform currently serves over 180,000 retailers and partners with 4,500 suppliers across Egypt.
Despite the challenging market landscape, Cartona sees a massive opportunity for growth in Egypt’s retail sector and remains focused on adding value to retailers and suppliers through its B2B e-commerce platform.
