Cartona closes $8.1m Series A extension in a mix of equity and debt
The round was led by Algebra Ventures, with Cartona’s existing investors – Silicon Badia and the SANAD Fund for MSME – also participating.
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Cartona, a B2B platform digitising Egypt’s traditional trade market – including mom-and-pop stores, hotels, restaurants, cafes, FMCG companies, and wholesalers – has completed an $8.1 million Series A extension fundraise.
The round was led by Algebra Ventures, with Cartona’s existing investors – Silicon Badia and the SANAD Fund for MSME – also participating. The round was raised from a strong position, with Cartona still having a significant cash position from its previous $12 million Series A funding, which was led by Silicon Badia.
Equity capital – of $5.6 million – is earmarked to further accelerate growth in Cartona’s different verticals. This round also includes $2.5 million in debt capital from Camel Ventures and GlobalCorp. The debt was raised in local currency with competitive terms and will help in fulfilling working capital needs for local retailers for whom – otherwise – capital access would have been difficult.
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.”
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.
“Mahmoud is an incredible operator and seamlessly blends deep domain expertise in the retail sector with a willingness to leverage technology to rewrite the playbook. The team’s core focus on profitability, even when capital was cheap, helped establish credibility in debt discussions with banks and NBFIs. We’re grateful for the opportunity to partner with Mahmoud and his team and believe it will go all the way.”
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