• Egypt-based B2B e-commerce  platform Cartona has raised $8.1 million ​in a ​Series A extension ​fundraise, led by  Algebra Ventures, along with existing investors, including Silicon Badia and the SANAD Fund for MSME.
• The round is a mix of equity capital ($5.6 million) and $2.5 million in debt from ​​Camel Ventures and GlobalCorp.
• Founded in 2019 by Mahmoud Abdelfattah, Mahmoud Talaat, Rafik Zaher, Cartona is digitising the traditional trade market in Egypt by connecting small retailers, FMCG producers, wholesalers, and distributors on its platform.
• Cartona will use the funds to accelerate ​growth, grow its market share, expand into new markets in MENA, and explore possible B2B2C opportunities. 
• In 2022, Cartona closed a $12 million Series A led by Silicon Badia and other investors.

Press release:

Cartona (“the Company”), the leading B2B platform digitising and empowering stakeholders of Egypt’s traditional trade market – including mom-and-pop stores, hotels, restaurants, ​​cafes, FMCG companies, ​​and ​wholesalers – announces the successful completion of an $8.1 million ​​Series A extension ​fundraise. 

The round was led by Algebra Ventures – the leading Egyptian tech venture capital firm, with Cartona’s existing investors – Silicon Badia and the SANAD Fund for MSME, also participating​​. The round was raised from a strong position, with Cartona still having a significant cash position from its previous $12 million Series A funding, which was led by Silicon Badia. 

Equity capital - of $5.6 million - is ​​earmarked ​to ​​further accelerate ​growth in Cartona’s different verticals, including ​FMCG and ​HORECA; grow its market share; establish firm foundations for regional expansion​ into new large markets in MENA; and explore exciting possible B2B2C opportunities. 

This round includes $2.5 million in debt capital from leading ​debt ​​providers ​(​​Camel Ventures and GlobalCorp) – as part of Cartona’s strategy to have diversified sources of capital. The debt was raised in local currency with competitive terms and will help ​​​in fulfilling working ​capital ​needs ​for local retailers for whom - otherwise - capital access would have been difficult.  

Cartona’s asset-light business model, ​with a lean cost base and compelling unit economics, remains a major competitive differentiator - especially amid an inflationary environment - with the Company reaching experience levels on ​par with asset-heavy operating models.

This positive outlook follows strong ​financial and operational progress for the Company, and a strategy geared to an exciting future:

• ​​Robust ​revenue growth and operational progress: >188,000 retailers​ in the platform​; ​and ​a presence in 17 Egyptian cities​ with a growing market share​
• Increased digital adoption and ​​product ​growth: With ​​social engaging ​feature​s ​such as small ​retailers being able to ​pool orders, ​and also unlocking access to finance​​
• Fast-growing new HORECA vertical: Leveraging Cartona’s infrastructure ​and learnings ​in its FMCG B2B core business​, serving >3,000 customers already – proving the scaling speed of asset-light models​ 

Mahmoud Talaat, CEO and Co-Founder of Cartona, said: “We are delighted to complete a Series A extension – which we have done from a position of strength. Our operational and financial metrics are all ​progressing ​very positive​ly which has helped ​​us to​​​ attract capital from existing and new investors​​​.

“We are committed to delivering ​our strategy which includes transforming the traditional trade market ​and creating value for all stakeholders in the marketplace. Our product ​​rollout, verticals and offerings ​will continue to ​grow as will our penetration of the Egyptian​ market​. We have an exciting future ahead, replicating the successful execution of our business model in other ​regional markets - all making trading as easy and accessible as possible for retailers​ and suppliers​.” 

Omar Khashaba, General Partner at Algebra Ventures, commented: “Cartona has built an exceptionally capital efficient model that has allowed it to deliver on strong growth and profitability, even during economic headwinds. The asset light nature of its model creates scalable infrastructure that can quickly be adapted for entry into new markets and adjacencies. Cartona has also been a driving force for financial inclusion in the retail sector as more and more of its small merchants take advantage of inventory financing options. 

“Mahmoud is an incredible operator and seamlessly blends deep domain expertise in the retail sector with a willingness to leverage technology to rewrite the playbook. The team’s core focus on profitability, even when capital was cheap, helped establish credibility in debt discussions with banks and NBFIs. We’re grateful for the opportunity to partner with Mahmoud and his team and believe it will go all the way.”

Cartona empowers the traditional retail market to be more efficient by streamlining the distribution process - directly connecting retailers with wholesalers, suppliers and FMCGs.  

Retailers can better manage stock and working capital via cash or credit orders - improving profit margins. Cartona’s proprietary technology can be fully integrated with retailers and suppliers for ordering, inventory management, branding, embedded finance, ledger and tax.