Africa's B2B e-commerce retail, a space where startups are digitizing informal trade to get thousands of merchants to operate more efficiently, is attracting more venture capital.
This time, it's a startup that was in the news this January, and it's a startup from Africa. The last-mile distribution e-commerce company received a Series A led by Tiger Global.
The round was Tiger Global's second investment in the B2B e-commerce space after backing Wasoko in its mega Series B round. Tiger Global reported a $17 billion loss during this year's tech sell-off.
Box Group is one of the investors in the growth round. Afore Capital, Oldslip and FJ Labs doubled down as seed round backers.
Logistic issues have been a problem for merchants who own small to medium-sized kiosks and shops across Africa for many years. The process has been made easier through the use of apps and more efficient distribution channels.
The YC-backed company said that merchants can order, stock and pay for their products via Jwallet and expect same-day delivery. Over 6,000 merchants used the company's platform in January. The number has increased by 50% according to the CEO.
The company provides data-driven services to banks and brands.
Akinin said that the wallet system currently launched as a stand alone product will be built around. Merchants in Southern Africa can use Jwallet to offer cash withdrawals and deposit services. Agency banking, a branchless banking system in Nigeria and West Africa where human agents act as ATMs, is similar to this play. There is an identical offering in Morocco.
B2B e-commerce platform Chari is acquiring the credit line of Axa Assurance in Morocco for $22M
You can offer your end consumers the ability to withdraw and deposit money into their wallet and bank accounts.
Jwallet has other working parts. According to the company, drivers who handle distribution for its 232 partners and use the wallet for payments can access asset finance and stock financing. Akinin believes that the wallet system can provide a more sustainable alternative to the popular bncl model that other platforms are offering to merchants.
Buy now, pay later is an illusion. I think there is credit, cash sales, and nothing in between, Akinin said.
When he tried the model in the past, he experienced defaults. Akinin narrated how merchants would use a platform to generate revenue, and then pay for the next invoice with this profit or purchase stock from another supplier in an entirely different supply chain.
Jwallet uses partnerships with banks to carry out digital payments and create communities for merchants to save and provide credit lines for each other on the platform. Merchants can use this process to build up their transaction histories and make enough money to pay back their customers.
Much of what we are doing with our Java wallet is creating an environment around the community and the shop rather than around our balance sheet. We are excited about that as a product because we are trying to prove that there is a different way to engage with shops.
The Series A round will see the expansion of the company's presence in Southern Africa, as well as new markets like Botswana and Eswatini. Akinin says that his startup is different from others because it is creating a supper for small businesses rather than just a marketplace.
Many businesses are taking money out of the market. We are trying to build a business that brings products into the market and continues in a journey that has a multiplier effect of moving money around that market. The point of building the Java wallet is that. The ability to pay for services and products in those markets will stem from this.
Sokowatch rebrands to Wasoko as it raises $125M Series B from Tiger Global and Avenir
All Rights Reserved © 2024
