Francophone Africa informal retail platform raises $3.2m
Francophone Africa informal retail platform raises $3.2m
The round was led by Ventures Platform.
Africa Private Equity News’ Connect messaging service is now free. Directly message other private equity professionals in our community.
Download the free Africa Private Equity News app: Android | iOS (or search for it in the app store)
Tap on the top-right icon to log in or register a free account
Tap on bottom-right Connect icon to start chatting
Maad, a tech and logistics platform for informal retailers in Francophone Africa, has announced the completion of its $3.2 million debt and equity seed funding round. The round was led by Ventures Platform, with participation from Seedstars International Ventures, Reflect Ventures, Oui Capital, Launch Africa, Voltron Capital and Alumni Ventures. Proparco and local banks participated in the debt financing.
Maad directly connects suppliers and small retailers of fast-moving consumer goods (FMCG). Its tech-driven solution allows retailers to order products at competitive prices with reliable delivery, while also benefiting from working capital loans. Maad leverages this distribution infrastructure to offer additional high-value services to brands, including data, software, and services for advertising, distribution, and market analysis.
Some 80% to 95% of consumption in Francophone Africa still takes place in informal mom-and-pop shops. The company currently operates in Senegal and has already achieved significant milestones, including partnering with more than 80 suppliers, offering a catalogue of over 1,000 SKUs of household brands, and reaching a monthly GMV of $3 million, while operating near breakeven.
"Maad's innovative approach to digitising the informal retail sector in Francophone Africa has the potential to create a significant impact on the lives of small business owners and consumers," said Dotun Oloworopoku, managing partner at Ventures Platform. "We are thrilled to lead this investment round and support the Maad team as they work towards building a more efficient and inclusive retail ecosystem in the region."
Charlie Graham-Brown, Seedstars International Ventures partner shared, "What sets Maad apart is their ability to navigate the complexities of the informal retail sector while maintaining a sustainable business model. Their focus on profitability and efficient use of capital, combined with their first-mover advantage in a largely untapped market, makes them an attractive investment opportunity. We believe that Maad has the potential to drive significant economic impact and create lasting positive change in the lives of retailers and consumers across the region."
* Subscribe to Africa Private Equity News’ monthly Dealmaker’s Log for a database of the reported investment deals, exits and fundraising closes. Click here for more information.