MaxAB, an Egyptian food and grocery B2B e-commerce platform closes pre-Series B round with support from international investors.
MaxAB, an Egypt-based food and grocery B2B e-commerce and distribution platform, has closed a USD 40 million pre-series B equity round. The company, which serves a network of retailers across Egypt and Morocco, will use the funds to further its expansion across the MENAP region.
The funds were raised with investments by Silver Lake, British International Investment, and DisruptAD, ADQ’s venture platform. Existing investors Beco Capital, 4DX Ventures, Flourish Ventures and Africa Platform Capital also participated.
MaxAB: Transforming supply chains
The company aims to transform the food and grocery supply chain by connecting suppliers with traditional retailers and by providing financing solutions. Since its launch in 2018, MaxAB has connected with 150,000 retailers, delivering 2.5 million orders. Last year saw the launch of the company’s fintech solutions aimed at its merchant base. The solutions aim to digitize the flow of cash and transform MaxAB into a “one-stop shop” for retailers.
Further expansion and development
Currently operating in Egypt and Morocco, the company aims to expand its coverage of Morocco and enter KSA. The new funds will also be used to expand the e-commerce aspects of its business, expand its technology and product teams and scale the fintech arm of the company while offering a wider range of finance products.
The Egyptian grocery business is largely served by smaller retailers, as is the case with much of the MENAP region. Having found success in Egypt and Morocco, MaxAB believes there is an opportunity to be found in expanding throughout the MENAP region. MaxAB estimates that there are more than 750,000 family-run businesses that can benefit from its services in Egypt and Morocco. Saudi Arabia is particularly attractive due to the government’s drive to digitize the informal sector and the FMCG industry’s willingness to explore new business models.
“Re-engineering” the informal food and grocery market
Belal El-Megharbel, CEO and Co-Founder at MaxAB, said, ‘Within just four years of operations, we have been able to re-engineer the informal food and grocery market in Egypt and Morocco. We are thrilled to have gained the recognition and financial backing of world-class investors, adding to the reception and support we receive from the retailers and suppliers we serve. Going by the quality of investors who are partnering with us, we are excited about venturing into the next stage of the MaxAB journey, which is a further consolidation of the informal grocery sector, heavy focus and investments in Fintech and replicating our success in new markets to grow beyond borders.
Amer Al Ameri, Head of Venture Capital and Technology investments at ADQ, said, ‘MaxAB are building technology-driven products and services that solve for challenges around better integrated, efficient, reliable grocery supply chains for the MENAP region. In digitizing the vastly traditional, multi-layered and fragmented food and grocery sector supply chain, they have broken the mould and presented a domino effect of opportunities, one of which is the launch of the fintech vertical. We are happy to be embarking on this journey with MaxAB and are looking forward to providing strategic guidance for continued growth and impact.’
MaxAB took part in one of the largest agrifood deals of 2021.
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