Cartona, an Egypt-based B2B e-commerce platform, raised $8.1 million in a Series A extension from Algebra Ventures, Silicon Badia, and the SANAD Fund for MSME. The funding round includes $5.6 million in equity and $2.5 million in debt from Camels Ventures and GlobalCorp.
Cartona, founded in 2019 by Mahmoud Abdelfattah, Mahmoud Talaat, and Rafik Zaher, connects small retailers, FMCG makers, wholesalers, and distributors to digitise Egypt’s conventional trading industry. The financing will help Cartona expand into new MENA countries, increase market share, and explore B2B2C options.
The successful completion of a $8.1 million Series A extension fundraise has been announced by Cartona (“the Company”), the leading B2B platform that is digitising and empowering stakeholders of Egypt’s traditional trade market, including mom-and-pop stores, hotels, restaurants, cafes, FMCG companies, and wholesalers.
Leading Egyptian tech venture capital firm Algebra Ventures led the round, and Cartona’s current backers Silicon Badia and the SANAD Fund for MSME also took part. Cartona came into the investment round in a strong position, having raised $12 million in Series A funding led by Silicon Badia, and still holding a sizeable cash position.
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A total of $5.6 million in equity capital has been set aside for the purpose of expanding it’s market share, accelerating growth in its various verticals, such as FMCG and HORECA, building strong regional expansion foundations into new, sizable MENA markets, and investigating promising B2B2C opportunities.
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 to attract 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.”
Caramel Ventures and GlobalCorp, two of the top debt suppliers, have contributed $2.5 million to this round of funding as part of Cartona’s objective to have a variety of funding sources. The debt was raised in local currency on favourable terms, which would assist local shops who would not have been able to obtain finance otherwise in meeting their working capital needs.
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It’s asset-light business model, with low costs and favourable unit economics, is a key competitive advantage in an inflationary climate. The company has achieved experience comparable to asset-heavy 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.
Cash or credit orders let retailers manage stock and working capital, increasing profits. Cartona’s patented platform integrates ordering, inventory, branding, embedded finance, ledger, and tax for merchants and suppliers.
Cartona connects retailers directly to wholesalers, suppliers, and FMCGs to streamline distribution and boost retail efficiency
About Cartona
Cartona is Egypt’s fastest-growing B2B e-commerce marketplace. They connect retailers directly to suppliers, wholesalers, and manufacturers to streamline distribution. Cartona lets retailers browse, compare, and order their products, saving time, money, and effort.
