Egyptian B2B e-commerce startup Capiter, which brings together manufacturers, brands, wholesalers and retailers on one platform, has raised a US$33 million Series A funding round to power its rapid expansion into digital financial services and additional markets.
Launched in July 2020 by serial entrepreneurs Mahmoud Nouh – also co-founder of mobility startup Swvl – and Ahmed Nouh, Capiter is a B2B marketplace that brings together FMCGs, wholesalers and merchants on one platform, enabling merchants to order their products through an e-commerce checkout and receive credit on their purchases.
The startup provides small and medium enterprises (SMEs) with a single platform that allows retailers to order a wide range of inventory, obtain delivery, and access financing. Currently, it is serving over 50,000 merchants and more than 200 sellers.
Capiter is planning on providing more digital financial services and expanding into overseas markets after raising a US$33 million Series A funding round, led by fintech-focused venture firm Quona Capital and MSA, an independent and interdisciplinary investment company. The round also features Savola, Shorooq Partners, Foundation Ventures, Accion Venture Lab, and Derayah Ventures.
The investment comes as Capiter ramps up its efforts to expand its service across Egypt and the region within 2022.
“As a homegrown startup, we are proud to have built such a sophisticated solution in such a short amount of time,” said Mahmoud Nouh, Capiter’s co-founder and chief executive officer (CEO). “Our entire application can be easily customised to each buyer’s needs, providing profitable insights into locations, walk-in rates, best product types, sales volume and more. All of this adds up to a machine-as-learning model that can actually help the merchant know which inventory items to purchase next. Combined with our value in providing merchants with access to financing through our local bank partnerships, we’ve created an economy-changing solution.”
Capiter represents Quona Capital’s first investment in Egypt.
“Capiter’s embedded finance model, combined with its expertise and strong user engagement, can have a dramatic impact on the financial lives of SMEs, helping them optimise their income which helps communities to thrive,” said Monica Brand Engel, co-founder and managing partner at Quona Capital.
“Quona’s investment in Capiter builds on our existing B2B e-commerce portfolio and growing presence in MENA. We look forward to helping Capiter on its journey to revolutionise the retail landscape in the region and provide a model for peers globally while increasing services for the underbanked.”