Cartona, the B2B platform digitising and empowering stakeholders of Egypt’s traditional trade market – including mom-and-pop stores, hotels, restaurants, cafes, FMCG companies, and wholesalers – has raised an $8.1 million Series A extension.
The round was led by Algebra Ventures, with Cartona’s existing investors – Silicon Badia and the SANAD Fund for MSME, also participating.
The $5.6 million equity capital will go into accelerating growth in Cartona’s different verticals, including FMCG and HORECA; grow its market share; establish firm foundations for regional expansion into new large markets in MENA; and explore exciting possible B2B2C opportunities.
This round includes $2.5 million in debt capital from leading debt providers (Camel Ventures and GlobalCorp) – as part of Cartona’s strategy to have diversified sources of capital. The debt was raised in local currency with competitive terms and will help in fulfilling working capital needs for local retailers for whom – otherwise – capital access would have been difficult.
Cartona’s asset-light business model, with a lean cost base and compelling unit economics, remains a major competitive differentiator – especially amid an inflationary environment – with the Company reaching experience levels on par with asset-heavy operating models.
Mahmoud Talaat, CEO and Co-Founder of Cartona said: “We are delighted to complete a Series A extension – which we have done from a position of strength. Our operational and financial metrics are all progressing very positivelyly which has helped us to attract capital from existing and new investors.
“We are committed to delivering our strategy which includes transforming the traditional trade market and creating value for all stakeholders in the marketplace. Our product rollout, verticals and offerings will continue to grow as will our penetration of the Egyptian market. We have an exciting future ahead, replicating the successful execution of our business model in other regional markets – all making trading as easy and accessible as possible for retailers and suppliers.”
Omar Khashaba, General Partner at Algebra Ventures, commented: “Cartona has built an exceptionally capital-efficient model that has allowed it to deliver on strong growth and profitability, even during economic headwinds.
“The asset-light nature of its model creates a scalable infrastructure that can quickly be adapted for entry into new markets and adjacencies. Cartona has also been a driving force for financial inclusion in the retail sector as more and more of its small merchants take advantage of inventory financing options.
“Mahmoud is an incredible operator and seamlessly blends deep domain expertise in the retail sector with a willingness to leverage technology to rewrite the playbook. The team’s core focus on profitability, even when capital was cheap, helped establish credibility in debt discussions with banks and NBFIs. We’re grateful for the opportunity to partner with Mahmoud and his team and believe it will go all the way.”
