NewsTechnology

Africa’s B2B Supply Chain Startup Raises $14 Million in Series A

Kenya stationed B2B e-commerce startup Sokowatch has raised $14 million in Series A funding toward its mission of revamping supply-chain sectors for Africa’s informal retailers.Africa's B2B Supply Chain Startup Raises $14 Million in Series A

From Nairobi, the company has developed a platform that connects merchants directly to local and multinational suppliers — similar to Unilever and Proctor and Gamble — and digitizes orders, payments, and delivery-logistics.

Since starting in 2016, and raising a $2 million seed round two years ago, Sokowatch has grown within Kenya and into Rwanda, Tanzania, and Uganda.

With its Series A, the startup plans to widen its client services — from working-capital to data-analytics — and target new African markets, in line with CEO Daniel Yu.

Sokowatch doesn’t rule out using its infrastructure to enter someday business-to-consumer (B2C)online retail.

For a moment, the startup’s primary business focus is to cut costs and increase revenue margins for small merchants.

Informal retail is still a leader in Africa — even with the rise of shopping malls and well-funded e-commerce ventures, corresponding to Jumia.

The dimensions and potential of the continent’s informal retail industry has captured the eye of economists and startups. GDP revisions in a number of African nations have revealed outdated statistical methods had been missing billions of dollars in financial activity. One estimate by The International Labor Organization places over two-thirds of Sub-Saharan Africa’s non-agricultural employment in the informal economy.

On the number of shops in that field, a 2016 study by global consultancy PwC predicted 90% of sales in Africa’s leading economies come by informal channels, similar to markets and kiosks.

Tags

Howard Larue

Howard is leading the column providing news about communication devices. He has worked in the industry long enough to understand the procedures and the knick-knacks of the sectors. His knowledge is as vast as his understanding. His achievements in the field of theories related to the communication industry are noted and framed and hence makes him one of the top achievers in the list.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Close
Close