Cartona, a B2B e-commerce platform in Egypt, has raised $8.1 million in a Series A extension, comprising $5.6 million in equity and $2.5 million in debt.
The funding round was led by Algebra Ventures, with participation from existing investors like Silicon Badia and SANAD Fund for MSME. Camel Ventures and GlobalCorp contributed to the debt portion.
With the capital, Cartona seeks to bolster its market presence in Egypt’s FMCG and HORECA sectors, while also exploring possible expansion into Saudi Arabia.
Cartona’s platform bridges retailers with FMCG suppliers and wholesalers, providing a streamlined, digital marketplace. In leveraging an asset-light model, Cartona enhances traditional supply chains rather than disrupting them.
The platform enables retailers to browse and purchase products efficiently, offering real-time insights and inventory management. Cartona’s digital approach addresses inefficiencies in the conventional marketplace, supporting over 180,000 retailers across 17 cities that now handle over 40,000 SKUs.
Partnerships are key in Cartona’s strategy. Collaborations with major FMCG companies and local suppliers enable Cartona to provide a one-stop shop for retailers.
This approach improves sales efficiency and also enhances market intelligence through real-time data insights. Notable partnerships include collaborations with Unilever and Talabat, the latter focusing on simplifying restaurant supply procurement.
Cartona’s focus on financial inclusion is seen through its adoption of BNPL (buy now, pay later) financing and embedded finance solutions. These initiatives help retailers manage working capital and inventory financing more effectively.
Currently, over 90% of Cartona’s credit orders are financed through local currency facilities, showing a shift from equity-based financing.
Despite a competitive industry, Egypt’s retail market remains largely untapped, with B2B e-commerce platforms covering just a fraction of it.
Cartona’s CEO, Mahmoud Talaat, points to the wide potential for growth, as the offline market still dominates transactions. The company’s success lies in its ability to support local partners, enhancing operational capabilities with technology while maintaining an established strength in supply chain management.
Cartona’s is leveraging its technology-driven model to penetrate deeper into existing markets and explore new opportunities.
The Egyptian retail sector, valued at $120 billion, offers room for growth, and Cartona is well-positioned to capture a huge share in driving the digital modification of traditional trade practices.
