Cairo, Egypt – Cartona (“the Company”), the leading B2B platform digitizing and empowering stakeholders of Egypt’s traditional trade market – including mom-and-pop stores, hotels, restaurants, ​​cafes, FMCG companies, ​​and ​wholesalers – announces the successful completion of an $8.1 million ​​Series A extension ​fundraise.

The round was led by Algebra Ventures – the leading Egyptian tech venture capital firm, with Cartona’s existing investors – Silicon Badia and the SANAD Fund for MSME, also participating​​. The round was raised from a strong position, with Cartona still having a significant cash position from its previous $12 million Series A funding, which was led by Silicon Badia.

Equity capital - of $5.6 million - is ​​earmarked ​to ​​further accelerate ​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.

This positive outlook follows strong ​financial and operational progress for the Company, and a strategy geared to an exciting future:

  • ​​Robust ​revenue growth and operational progress: >188,000 retailers​ in the platform​; ​and ​a presence in 17 Egyptian cities​ with a growing market share​
  • Increased digital adoption and ​​product ​growth: With ​​social engaging ​feature​s ​such as small ​retailers being able to ​pool orders, ​and also unlocking access to finance​​
  • Fast-growing new HORECA vertical: Leveraging Cartona’s infrastructure ​and learnings ​in its FMCG B2B core business​, serving >3,000 customers already – proving the scaling speed of asset-light 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 positive​ly 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 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.”

Cartona empowers the traditional retail market to be more efficient by streamlining the distribution process - directly connecting retailers with wholesalers, suppliers and FMCGs.  

Retailers can better manage stock and working capital via cash or credit orders - improving profit margins. Cartona’s proprietary technology can be fully integrated with retailers and suppliers for ordering, inventory management, branding, embedded finance, ledger and tax.  

-Ends-

Further information   
Thoburns   
Johanna Lawson-Dick    
cartona@thoburns.com 

About Cartona  

Cartona is a B2B platform connecting buyers (retailers) and sellers (producers, distributors and wholesalers) by digitizing the traditional trade market. Cartona enables buyers to order inventory by providing an easy-to-use mobile application that allows them to access a network of curated sellers. Cartona has introduced embedded financing which is seamlessly integrated into ordering cycles. The platform additionally offers detailed market insights on buyer behaviour, price competition and market share.

More information can be found at: https://cartona.com/

About Algebra Ventures       

Algebra Ventures is a tech-focused venture capital firm that partners with bold and resilient founders building transformative companies in Egypt, and across the African continent. Algebra raised its first $54M fund in 2016 and its second $100M fund in 2022 from a diverse investor base including international DFIs, governmental institutions, corporate investors and family offices.  

Among the most experienced venture investors in the Middle East and Africa, Algebra has backed some of the most notable startups in Egypt that have become category leaders in their markets. Algebra Ventures is a multi-stage investor supporting founders from seed stage to Series B. More than just a source of capital, Algebra acts as a comprehensive growth platform for startups, providing strategic guidance, access to co-investors, and talent development. Algebra’s leadership team has invested in over 100 companies in the past 15 years. 

About The SANAD Fund for MSME  

The SANAD Fund for MSME is an impact investment fund dedicated to supporting entrepreneurs in the Middle East and North Africa. By providing much-needed access to financial resources, SANAD helps micro, small, and medium enterprises (MSMEs) in the region fulfil their role as engines of inclusive economic growth, job creation, and prosperity.

SANAD channels funding to this vital target group by building the ability of the local financial sector to serve the needs of MSMEs. This is done by investing in local partners such as microfinance institutions, leasing companies, banks, fintechs, and other financial intermediaries that share our commitment to financial inclusion. SANAD also facilitates access to housing loans for underprivileged sections of society, in addition to promoting agricultural lending and financial technology.

About Silicon Badia

Silicon Badia is a Venture Capital firm that invests in technology startups globally. With funds between the US and the MENA region, Silicon Badia has backed 100 technology startups in over 16 different industries worldwide.