Sokowatch, an African e-commerce firm that uses innovative technology to disrupt the informal retail supply chain, has closed a $125 million Series B equity investment, the largest non-fintech venture funding round ever completed in Africa. The round, which is led by Tiger Global, the world’s largest venture capital company, and Avenir Growth Capital, includes VNV Global, Binny Bansal (Co-Founder of Flipkart), and Sujeet Kumar (Co-Founder of Udaan), as well as current investors Quona Capital, 4DX Ventures, and JAM Fund.
Along with the fresh funding, Sokowatch has opened its first stores in West Africa, in Abidja CôtedIvoire, and Dakar, Senegal, as it continues to change access to consumer products in Africa $600 billion informal retail industry. The company has rebranded as Wasoko, which means “People of the Market” in Swahili, to reflect its rapidly expanding Pan-African operations. The company transformation from a backend distribution software platform in East Africa to a public brand that provides free delivery of vital items and working capital finance to informal shopkeepers on opposite ends of the African continent is reflected in the new name.
From Sokowatch To Wasoko
Wasoko has delivered 2.5 million orders to over 50,000 informal shops in Kenya, Tanzania, Rwanda, Uganda, CôtedIvoire, and Senegal since its launch in 2016, with revenue growth of over 500 percent in the last 12 months. Wasoko has established a truly Pan-African firm with over 800 full-time employees across the African continent, all of whom are also shareholders in the company thanks to Wasoko universal employee equity policy.
Wasoko will be able to expand its geographic reach and product offerings across the continent with the extra financing. While continuing to maintain its market-leading position throughout its six present countries, the company is looking into expanding into Nigeria and Southern Africa. Wasoko is also looking towards expanding its product portfolio into verticals like merchant point-of-sale systems, bill payments, and social commerce, both through internal innovation and strategic investments and acquisitions of relevant companies.
“After more than six years of establishing and constantly iterating on our operations, we are happy to have proved the traction and quality of company required to attract capital from world-class investors,” said Daniel Yu, Wasoko Global CEO and Founder. We’re completely focused on using their strategic backing to establish one of the world’swd largest e-commerce enterprises and improve access to goods and services for African individuals across the continent.”
“Informal shops capture the vast bulk of consumer expenditure in Africa, and they are significantly neglected by existing distribution and financial infrastructure,” says Andrew Sugrue, Founding Partner at Avenir Growth Capital. Wasoko category-defining Pan-African commerce platform, as well as the efficiencies it delivers to these merchants and their suppliers through a mix of superior product selection, shipping, and financial services, are exciting to us.”
Wasoko Series B round is Africa’s largest non-fintech venture capital raise. Wasoko has added Sujeet Kumar, Co-Founder of Udaan – the world’s largest B2B retail e-commerce company – to its Board of Directors to give strategic leadership for Wasoko continuing expansion, in addition to the record raising and rebrand.