This archive report was first published on 27 September 2019.
MaxAB Secures $6.2 Million in Seed Funding ¶
MaxAB, an Egyptian B2B e-commerce marketplace, has secured $6.2 million in seed funding, one of the largest seed rounds raised by a MENA start-up. The round was co-led by Beco Capital, 4DX Ventures, and Endure Capital, with participation from 500 Startups, Outlierz Ventures, and other local investors.
Founded by Egyptian and Libyan entrepreneurs Belal El-Megharbel and Mohamed Ben Halim, MaxAB has built a 270-strong team and a stock list of over 600 products. The company uses technology to connect informal food and grocery retailers with suppliers via an easy-to-use app, aiming to automate and simplify Egypt's $45 billion FMCG food retail market.
MaxAB has recorded 50% month-on-month growth, with 9,000 activated retailers on the platform already. The company plans to reach 50% of Egypt's population within two years before expanding across different markets.
Belal El-Megharbel, Co-Founder and CEO at MaxAB, said: “Nobody has addressed the underserved retailers before; retailers are faced with a limited assortment of products, the hassle of dealing with multiple wholesalers and restricted access to credit facilities. At the other end of the supply chain, the FMCGs have limited visibility on market trends, demand patterns and retailers’ business needs – leading to losing potential revenue opportunities.”
Yousef Hammad, Managing Partner at Beco Capital, said: “This is Sparta” was the first impression I got when I met this team of warriors, battling one of the biggest inefficiencies on the country’s balance sheets. By leveraging technology, MaxAB is redefining the grocery supply chain in Egypt to fit the requirements of the micro retailers who make up 90% of the grocery market.
Peter Orth, co-founder and Managing Partner at 4DX Ventures, said: “We’ve been consistently impressed with how Belal and the rest of the team have executed, and achieved significant traction in a very short period of time. We believe that their B2B e-commerce model is the right way to serve this significant market, and we’re really excited to partner with the team to drive the next phase of growth.”
