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Sokowatch raises $125M, rebrands to Wasoko
![Sokowatch raises $125M, rebrands to Wasoko](https://adigitalboom.com/wp-content/uploads/2022/03/keyna-wasoko.jpg)
Nairobi-based B2B company that connects informal retailers to manufacturers, Sokowatch, has raised $125 million in Series B funding from Tiger Global and Avenir as it rebrands to Wasoko. The company valuation increased to $625 million.
Founder and CEO Daniel Yu launched Sokowatch in Kenya in 2015 as an asset-light platform and a marketplace for distributing fast-moving consumer goods from suppliers to retailers. The model wasn’t efficient because Sokowatch couldn’t guarantee that the goods were delivered to the customer when they made orders.
Yu said, “We realized that to deliver the quality of service these shops deserved, we needed to get more involved,” resume “In managing the operations directly ourselves … we went from an asset-light backend distribution software platform to this market-facing platform that was out there delivering goods directly to shops themselves.”.
Sokowatch was full-scale asset-heavy, owning and leasing facilities in its distribution chain from warehousing to logistics. And what started in Kenya soon scaled into neighboring East African markets Tanzania, Rwanda, and Uganda in 2018.
Yu believes Sokowatch is now ready for a rebrand as it enters its next growth phase — moving from an East African player to a pan-African one. While the company was due for a rebrand, Yu said it was still figuring out operations in this new integrated model. However, the recent entry into Ivory Coast and Senegal forced its hand.
Yu commented, “Sokowatch started as this kind of backend brand. We wanted a brand that could be more front and center for the African retailer and easily pronounced across all markets while reflecting our East African roots. So that’s why we’ve rebranded now to Wasoko, meaning ‘people of the market.”.
Wasoko offers an excellent service for its clients by allowing retailers from Kenya, Tanzania, Rwanda, Uganda, Ivory Coast, and Senegal to order products from suppliers via SMS or its mobile app for same-day delivery to their stores and shops via a network of logistics drivers.
It also offers a buy now, pay later option for retailers who need working capital to order more goods; these options are the latest trend for B2B retail and e-commerce companies. They see it as a sticky option in an otherwise volatile space where retailers aren’t committed to one player, given non-differential offerings.
TradeDepot and MarketForce raised impressive rounds with significant debt components to provide working capital to these retailers. Still, instead of that, Wasoko is financing its BNPL option from its balance sheet.
MarketForce is an asset-light platform in Kenya, Nigeria, Uganda, Tanzania, and Rwanda. TradeDepot, on the other hand, operates an asset-heavy model across Nigeria, Ghana, and South Africa; as we notice, what they have in common is their presence in Nigeria, which is considered the largest market for informal retail in Africa.
Yu said, “We do buy now, pay later to our merchants, and it’s a significant part of our business. But we’ve been able to do that independently without raising any separate debt facilities. But we’re looking at debt financing options”.
Yu was asked why Sokowatch has expanded into other West African markets other than Nigeria; he answered, “Our choice to expand to the Francophone West African markets, I think, reflects the strong growth that those countries have exhibited in the region overall. If you look at the past ten years, both Senegal and Cote d’Ivoire have experienced solid year-on-year GDP growth”.
Resume “Whereas you look at a market like Nigeria, the reality is that growth has been volatile and, in some years, negative. And on top of that, you have a lot of challenges in Nigeria’s macro-environment when it comes to the economy, currency and regulations.”.
Commenting on the Informal retail across any African market that is considered an untapped opportunity that gives any first-mover serious advantage, Yu said, “Any market that we look at is going to have a huge demand for our services. And of course, the supply chains in these other markets are even less organized, less established, and therefore more fragmented with more inefficiencies”.
Resume “We see an opportunity to take our model to be truly effective across Africa and expect that we’ll be able to leverage our existing experience in our playbook for successfully launching and scaling our services now in six countries across the continent.”.
Wasoko has delivered 2.5 million orders to more than 50,000 active retail customers in its network since launching.
The company said its revenue has grown over 500% in the past year and 1,000% since 2019. TechCrunch also learned that the African B2B e-commerce platform is processing $300 million in ARR/GMV across more than 150,000 monthly orders.
The round of funding was good news for both employees and early backers who took a bet on Wasoko years ago as new investors Tiger Global and Avenir Growth Capital lead its Series B round (the pair also co-led Flutterwave’s Series C investment last March), as Wasoko’s 800 employees are shareholders of the company through its universal employee equity policy.
When asked about the similarities between his and Flutterwave’s round, Yu said, “It was strategic. We’ve shared investors with Flutterwave since the early days; 4DX Ventures, for example, was an early investor in both Flutterwave and us,”.
Resume “When it came to raising this round, I think being able to follow in their footsteps by working with these great global investors who had seen the great return that Flutterwave had brought them, I think helped smooth path for us as we reached the stage in our growth as well.”.
This is the 10th deal and first outside fintech since re-entering Africa’s tech market in 2021 for Tiger Global; Wasoko is also its second e-commerce investment on the continent after leading Takealot’s $100 million in 2014 (Wasoko is B2B e-commerce, while Takealot is B2C) as it’s the third African investment for Avenir Growth Capital following its checks in Flutterwave and Carry1st.
Coming two years after it closed a $14 million Series A, Wasoko’s round welcomed participation from VNV Global; Binny Bansal, co-founder of Flipkart; and Sujeet Kumar, co-founder of Udaan; Quona Capital; 4DX Ventures; and JAM Fund.
Kumar, who has years of experience running Udaan (the largest B2B retail e-commerce company globally), joins Wasoko’s board of directors. This is the second-largest non-fintech round in Africa after Andela and most significant in the B2B retail e-commerce space with big names such as Egypt’s MaxAB and Kenya’s Twiga.
The new investment that values the company at $625 million will allow Wasoko further drive geographic expansion and product growth across the continent.
The company said it is exploring expansion into the West African nation and Southern Africa while consolidating its position across its six current markets; it will also hire new employees and expand its product offerings to point-of-sale merchant systems, bill payments, and social commerce verticals it might build in-house or back and acquire companies that provide such services.
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Saudi Fintech Lendo Signs MOU with J.P. Morgan
![Saudi Startup Lendo Joins Forces with J.P. Morgan to Enhance SME Financing](https://adigitalboom.com/wp-content/uploads/2024/09/Lendo-x-JP-Morgan-MOU.png)
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
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TA Telecom Introduces AnteThink: A New AI Decision Support Tool
![**TA Telecom Introduces AnteThink: A New AI Decision Support Tool for Enhanced Decision-Making**](https://adigitalboom.com/wp-content/uploads/2024/01/antethink-ta-telecom.png)
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
![TA Telecom Introduces AnteThink: A New AI Decision Support Tool for Enhanced Decision-Making](https://adigitalboom.com/wp-content/uploads/2024/01/antethink-screenshot-800x450.png)
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
News
GoDaddy’s Global Markets VP Predicts Egypt’s E-commerce to Hit $9.88 Billion by 2028
![GoDaddy's Global Markets VP Predicts Egypt's E-commerce to Hit $9.88 Billion by 2028](https://adigitalboom.com/wp-content/uploads/2023/12/Selina-Bieber-the-Senior-Director-of-Global-Markets-at-GoDaddy.webp)
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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