MaxAB, the MENAP region’s largest food and grocery B2B e-commerce and distribution platform, has announced the closing of a $40 million pre-series B equity deal.
As part of its Long Term Capital strategy, Silver Lake, a global leader in technology investing, participated in the round.
British International Investment (BII), formerly known as CDC), the development finance institution of the UK government, also participated in the round. Another participant was DisruptAD, ADQ’s venture platform. In this round of funding, investors like Beco Capital, 4DX Ventures, Flourish Ventures, and Africa Platform Capital are also taking part.
The food and grocery supply chain is transforming due to MaxAB, which is linking suppliers with underserved traditional retailers and delivering a wide range of embedded finance solutions. In doing so, the company is contributing to the growth of the economy in the country. Since its start in 2018, MaxAB’s e-commerce business has successfully provided services to approximately 150,000 distinct traditional merchants, delivering a total of 2.5 million orders while maintaining a delivery success rate that ranks first in the industry. MaxAB started implementing its fintech solutions across its merchant network in 2021 to digitise the cash flow and transform the company into a one-stop shop for traditional shops. MaxAB plans to do more geographical expansions that will give the company full coverage of Morocco by the end of 2023 and a foothold in the Kingdom of Saudi Arabia. MaxAB will be ready to grow in more places once it has established itself as the market leader in its field and has a presence in all of Egypt’s major cities and Casablanca, Morocco.
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MaxAB intends to expand its technical team with the funds
MaxAB plans to use the money it just raised to grow its technical and product teams and to add more embedded finance solutions to its fintech division.
Belal El-Megharbel, CEO and Co-Founder at MaxAB, remarked, “Within just four years of operations, we have been able to re-engineer the informal food and grocery sector in Egypt and Morocco. In addition to the positive welcome and support we receive from the stores and suppliers we work with, we are happy to have received the recognition and financial backing of world-class investors. We are excited about the next stage of the MaxAB journey because, based on the calibre of investors who are working with us, it will involve a further consolidation of the informal grocery sector, a heavy focus on and investments in Fintech, and the replication of our success in new markets so that we can expand beyond national boundaries.
“MaxAB is building technology-driven products and services that solve challenges around better integrated, efficient, and reliable grocery supply chains for the MENAP region,” Amer Al Ameri, Head of Venture Capital and Technology Investments at ADQ, stated. They have shattered the mold and presented a domino effect of opportunities due to digitizing the hugely traditional, multi-layered, and fragmented supply chain saw in the food and grocery sector. One of these changes is the creation of the fintech vertical. We’re excited to start this journey with MaxAB, and we’re looking forward to giving them strategic help to make sure they keep growing and making an impact.
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MaxAB plans to grow across the MENAP region
A similar dynamic can be found in many other markets across the MENAP region, with small conventional stores serving as the industry’s backbone. This can be seen in Egypt, where the grocery industry relies heavily on them. MaxAB has established a tried-and-true playbook of experiences, technology, data, and relationships that can be leveraged for launch into new geographies. The company is looking to replicate the same level of success across the region after having achieved unprecedented success in Egypt and Morocco. MaxAB estimates that more than 750,000 mom-and-pop businesses in Egypt and Morocco alone require its services. On the other hand, Saudi Arabia is very appealing because the government wants to digitalize the informal sector, and FMCG companies are willing to try out new business models.
Silver Lake is making the investment as part of its long-term capital plan, which was initiated in the year 2020.