Despite a substantial deposit of natural resources and a teeming young population, Africa still houses the world’s top five poorest countries – DR Congo, Mozambique, Uganda, Rwanda and Zimbabwe. The economy of these countries is either fragile or impacted by conflict.

The informal sector, particularly SMEs, is a significant driver of the African economy, generating about $1 trillion in annual sales and contributing $2.6 trillion to nominal GDP. During the recent close of TradeDepot’s Series B funding round, Makhtar Diop, Managing Director of the International Financial Corporation (IFC), said the informal sector is a “large and critical part of Africa’s economy, accounting for around 80 per cent of jobs in the region.” 

The continent comprises low, lower-middle, upper-middle, and high-income countries. Yet, a lack of access to financing and a fragmented distribution network have resulted in distribution inefficiencies and numerous missed opportunities across the value chain. This is why eCommerce startup TradeDepot is moving to improve the informal sector with its latest $110 million Series B equity and debt fund. 

The eCommerce startup, which connects consumer goods brands to thousands of retailers, aims to bolster B2B economic participation across the continent. Founded in 2016, TradeDepot has recorded its footprints in 12 cities across Nigeria, Ghana and South Africa, where it leverages its data, technology and robust logistics operations to connect retailers with suppliers. 

Furthermore, the startup has helped unlock financing to fund inventory purchases for retailers, benefiting all parties on the value chain. The latest fund will support its delivery of the Buy-Now-Pay-Later services to five million SME retailers and further increase its presence across the continent.

Through its ShopTopUp platform, TradeDepot will offer a broad range of consumer goods to SME retailers within its network and provide credit lines to enable them to access inventory and pay in instalments later. “We are excited to work with TradeDepot to leverage technology to help small businesses across the continent, particularly the many retailers led by women, access the resources they need to grow and scale,” Diop said. 

The funding round was led by IFC, a sister organization of the World Bank and a member of the World Bank Group. Other investors in the round include Nairobi-based Novastar Ventures, Sahel Capital, the CDC Group of the United Kingdom, Endeavor Catalyst, and existing investors Partech Partners and MSA Capital. Massachusetts-based Arcadia Funds led the debt funding. “We remain super focused on making digital commerce and financing both accessible and affordable to neighbourhood retailers across key cities in Africa,” said Onyekachi Izukanne, CEO and co-founder of TradeDepot.

TradeDepot is an end-to-end distribution platform that connects the world’s top consumer goods companies directly to retailers on the streets of Africa’s cities. The company was co-founded in 2016 by Onyekachi Izukanne, Michael Ukpong and Ruke Awaritefe. The startup uses technology to improve the distribution of food, beverages and personal care products to retailers. It is on a mission to improve livelihoods for retail store owners in emerging economies.

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