MaxAB, a food and grocery B2B e-commerce and distribution platform that serves a network of traditional merchants in Egypt and Morocco, has announced the completion of a $40 million pre-series B equity transaction to drive its development across the MENAP area. Several new investors participated in the round, including Silver Lake, the global leader in technology investing, through its Long Term Capital strategy; British International Investment (BII; formerly known as CDC), the UK government’s development finance institution; and DisruptAD, ADQ’s venture platform. Existing investors Beco Capital, 4DX Ventures, Flourish Ventures, and Africa Platform Capital also participated in the round.
MaxAB will also use the fresh funding to fund more expansion in its e-commerce arm, expand its technology and product teams, and scale its fintech arm by offering a broader choice of integrated financial solutions.
“Within just four years of operations, we have been able to re-engineer the informal food and grocery market in Egypt and Morocco. We are thrilled to have gained the recognition and financial backing of world-class investors, adding to the reception and support we receive from the retailers and suppliers we serve. Going by the quality of investors who are partnering with us, we are excited about venturing into the next stage of the MaxAB journey, which is a further consolidation of the informal grocery sector, heavy focus and investments in Fintech and replicating our success in new markets to grow beyond borders,” Belal El-Megharbel, CEO and Co-Founder at MaxAB, said.
Why The Investors Invested
The startup has generated considerable traction since it was founded. MaxAB’s e-commerce operation has successfully served nearly 150,000 distinct conventional merchants since its inception in 2018, delivering 2.5 million orders while maintaining an industry-leading delivery success rate.
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‘MaxAB are building technology-driven products and services that solve for challenges around better integrated, efficient, reliable grocery supply chains for the MENAP region. In digitizing the vastly traditional, multi-layered and fragmented food and grocery sector supply chain, they have broken the mould and presented a domino effect of opportunities, one of which is the launch of the fintech vertical. We are happy to be embarking on this journey with MaxAB and are looking forward to providing strategic guidance for continued growth and impact,” Amer Al Ameri, Head of Venture Capital and Technology investments at ADQ, said.
A Look At What The Startup Does
MaxAB is a B2B e-commerce platform that links suppliers with underserved conventional merchants and offers a variety of funding alternatives. It was founded in 2018 by Belal El-Megharbel and Mohamed Ben Halim.
MaxAB is revolutionising the food and grocery supply chain by linking suppliers with underserved conventional shops and providing a variety of integrated financial solutions, so contributing to the country’s economic growth.
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MaxAB began delivering fintech solutions to its merchant base in 2021, with the goal of digitising cash flow and transforming MaxAB into a one-stop shop for traditional retailers. MaxAB has established itself as the market leader in its industry, with a presence in all major cities in Egypt as well as Casablanca, Morocco, and plans future regional expansions to achieve complete geographical coverage of Morocco by the end of 2023, as well as an entry into the Kingdom of Saudi Arabia.
Small traditional stores are the backbone of the Egyptian grocery business, and a similar dynamic exists in many other MENAP nations. MaxAB has created a proven playbook of experiences, technology, data, and partnerships that can be utilised for launch into other countries and is hoping to repeat the same success across the region, having achieved remarkable success in Egypt and Morocco. MaxAB says that more than 750,000 small enterprises in Egypt and Morocco alone require its services, with Saudi Arabia being particularly appealing owing to the government’s push to digitise the informal sector and the FMCG’s openness to experiment with new business models.
Silver Lake is investing as part of its Long Term Capital plan, which was launched in 2020.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh