MaxAB closes $6.2 million seed round
MaxAB, an Egypt-based business to business (B2B) e-commerce marketplace has secured seed funding of $6.2 million, in one of the largest ever seed rounds raised by an Egyptian startup. The investment was co-led by Beco Capital, 4DX Ventures, and Endure Capital, with participation from 500 Startups, Outlierz Ventures and other local investors. The company plans to use this investment to reach 50 per cent of Egypt’s population within the next two years before expanding across different geographies in North Africa.
Founded by Belal El-Megharbel and Mohamed Ben Halim, MaxAB connects informal food and grocery retailers with suppliers and brands through an application that has more than 600 products, including groceries, beverages, dairy, confectionery and non-food products.It aims to automate and simplify Egypt’s $45 billion FMCG food retail market.
“We are using data and analytics to understand purchasing and retail behaviours, as well as make the end-to-end process of brands seamless and convenient,” said El-Megharbel, chief executive officer (CEO) at MaxAB. “This will enable [fast moving consumer goods] FMCGs to make informed decisions about their purchasing, which will ultimately have a positive effect on their bottom line and catalyse one of the biggest markets in Egypt.”
Currently in Egypt, small retailers make up 90 per cent of the grocery market
“By leveraging technology, MaxAB is redefining the grocery supply chain in Egypt to fit the requirements of the micro retailers,” said Yousef Hammad, managing partner at Beco Capital.
“The metrics they have recorded in such a short period are impressive, and we expect to continue to see double-digit growth as they scale.”