Egypt’s B2B platform, Cartona, recently raised an additional $8.1 million in a Series A extension round. Notably, Algebra Ventures led the funding, with ongoing support from existing investors Silicon Badia and the SANAD Fund for MSME.
This latest extension follows a previous $12 million Series A round, which was also led by Silicon Badia. Thus, this continuous investor confidence highlights Cartona’s strong position and significant growth potential.
Strategic Allocation of Funds
Specifically, Cartona plans to allocate $5.6 million of the new equity capital to drive growth across various verticals, including FMCG (Fast-Moving Consumer Goods) and HORECA (Hotels, Restaurants, Cafes). Consequently, the company aims to expand its market share, lay the groundwork for regional expansion in MENA, and explore promising B2B2C (Business-to-Business-to-Consumer) opportunities.
In addition, Cartona will use $2.5 million in debt capital from Camel Ventures and GlobalCorp to support local retailers. This debt, raised under competitive local terms, will help retailers access essential working capital, thereby boosting their operational efficiency.
Asset-Light Business Model
Furthermore, Cartona’s asset-light business model stands out in today’s inflationary environment. By keeping costs low and maintaining robust unit economics, Cartona demonstrates both resilience and scalability. The platform effectively connects retailers directly with wholesalers, suppliers, and FMCGs, thus simplifying distribution and improving stock management.
Transforming Egypt’s Traditional Trade Market
Moreover, Cartona’s platform supports various stakeholders in Egypt’s trade market, such as mom-and-pop stores, hotels, restaurants, cafes, FMCG companies, and wholesalers. With over 188,000 retailers and a presence in 17 Egyptian cities, Cartona is making significant strides in enhancing market efficiency and financial inclusion.
Retailers benefit from features like order pooling and inventory financing, which not only improve profit margins but also facilitate business growth. Importantly, Cartona’s scalable infrastructure serves 3,000 customers and demonstrates the model’s rapid growth potential.
Leadership and Investor Confidence
In this context, Mahmoud Talaat, CEO and Co-Founder of Cartona, expressed his enthusiasm about the successful fundraise: “We are pleased to complete a Series A extension from a strong position. Our positive operational and financial metrics have helped us attract capital from both existing and new investors. Consequently, we remain committed to transforming the traditional trade market and creating value for all stakeholders.”
Similarly, Omar Khashaba, General Partner at Algebra Ventures, praised Cartona’s efficient model: “Cartona has achieved strong growth and profitability, even amid economic challenges. Moreover, its asset-light approach offers scalable infrastructure that can be adapted to new markets. Cartona has also promoted financial inclusion in the retail sector.”
A Bright Future Ahead
As a result, Cartona’s recent funding round represents a key milestone in its mission to revolutionize Egypt’s traditional trade market. With a strong focus on growth, regional expansion, and financial inclusion, Cartona is well-positioned to replicate its success across the MENA region. The company is set to make trading more accessible for retailers and suppliers.
Stay updated on Cartona’s developments and strategic moves as it continues to lead the digital transformation in Egypt and beyond.
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