Egyptian e-commerce startup MaxAB raises USD 6.2 mn in seed investment
STARTUP WATCH- Cairo-based e-commerce startup MaxAB has raised USD 6.2 mn in one of the MENA region’s largest-ever seed rounds, it said in a statement (pdf). The round was co-led by Beco Capital, 4DX Ventures, and Endure Capital, while 500 Startups, Outlierz Ventures, and other local investors participated. The company expects the investment to enable it to reach 50% of the Egyptian population in the next two years, before expanding into other markets.
MaxAB connects micro-retailers with suppliers, aiming to streamline a USD 45 bn industry: MaxAB is a platform that connects informal food and grocery retailers with suppliers through an Android app. It aims to automate and simplify the USD 45 bn consumer goods industry in Egypt by providing retailers in underserved areas access to a variety of products, the ability to order stock online, a rapid delivery service, and access to credit. Brands that use the platform can make use of tools including real-time demand monitoring, helping them make informed decisions about their purchasing. MaxAB has a stock list of over 600 products and 9k retailers active on the platform, and has recorded 50% month-on-month growth.
Investors anticipate rapid growth: Co-founders Belal El Megharbel and Mohamed Ben Halim, who lead a team of 270 people, have been praised by investors for the effectiveness of their business model. “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,” said Yousef Hammad, managing partner at Beco Capital.