Maad, a Senegalese startup focused on digitizing traditional retail in Africa, has secured $3.2 million debt-equity funding.
The investment round will enable Maad to expand within Senegal and across the wider Francophone region.
Maad’s platform helps informal retailers — mom-and-pop stores — by simplifying access to fast-moving consumer goods (FMCG). The company achieves this by connecting retailers directly with suppliers, eliminating the need for multiple dealers that traditionally inflate prices and lead to stockouts.
Founded in 2020 by the CEO, Sidy Niang and Jessica Long, COO, Maad initially focused on data collection for companies managing internal distribution.
The inefficiencies in the FMCG supply chain made Maad delve into building a B2B e-commerce platform in September 2021.
Maad offers a one-stop shop for retailers, allowing them to order through a mobile app, call center, or field agents. Orders are fulfilled from Maad’s warehouses and delivered using their in-house logistics network, ensuring cost-effectiveness and consistent service.
Long believes this vertically integrated approach is essential to provide good service and meet the reliability needs of our clients. “I don’t think that we would be able to offer a similar service if we relied on a third-party provider.”
Maad currently serves over 6,500 active retailers via its network of 80 suppliers, with a monthly GMV of $3 million. The company collaborates closely with suppliers to offer competitive pricing and exclusive product access for retailers.
This focus on informal retailers is important, as they account for roughly 80% of household retail sales in sub-Saharan Africa due to their deep reach within communities.
Maad goes beyond simplifying transactions, but also collects valuable data on products and retailers, helping suppliers to make informed business decisions. Additionally, Maad helps informal retailers address inventory management and financing challenges.
The company’s funding comes at a time when B2B e-commerce startups in Africa face increased investor challenges due to thin margins and capital-intensive models. These factors have led to scaling back for some players and even closures for others.
Maad, claiming a first-mover advantage in Senegal, plans to expand within the country, particularly targeting remote areas. The aim is to enter a new Francophone market by year’s end, and also introduce a buy-now-pay-later (BNPL) service to support retailers with inventory financing.
Investors in the seed round included Ventures Platform, leading the round with participation from Seedstars International Ventures, Reflect Ventures, Oui Capital, Launch Africa, Voltron Capital and Alumni Ventures. $900,000 in debt financing was received from French DFI Proparco and local banks.
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