Sumet Technologies, a Tanzanian startup aiming to overhaul the distribution of fast-moving consumer goods (FMCG) across Africa, has secured US$1.5 million in a pre-seed funding round. The investment, a mix of equity and debt financing, will be used to bolster the company’s technology infrastructure, improve operational efficiency, and drive expansion into new markets.
Founded in 2022, Sumet leverages a technology-driven platform to connect FMCG brands with a network of over 6,500 active retailers spanning all 26 provinces of mainland Tanzania. The company’s approach seeks to address the logistical complexities and high costs often associated with reaching the fragmented and informal retail sector that characterises much of the African consumer market.
The funding round attracted a strategic mix of angel investors, including the African Business Angel Network (ABAN), Catalytic Africa, and an angel syndicate from Egypt. The capital injection comes at a time of significant growth for Sumet, which reports a fifteen-fold increase in growth since the second quarter of 2023 and has tripled its workforce to over 70 employees.
Hazem Afify, Chief Executive of Sumet, highlighted the significance of the investment in tackling a key challenge in African commerce. “At Sumet, we’re tackling one of Africa’s biggest challenges — enabling new brands to enter and grow in the market,” he said. “This funding is crucial to strengthening our tech stack, bridging distribution gaps, and building a dynamic, cost-effective ecosystem that empowers brands to scale effectively.”
Sumet’s business model focuses on streamlining the supply chain through data-driven algorithms and predictive analytics. This allows for optimised delivery routes, efficient inventory management, and the mitigation of credit risks for both suppliers and retailers. The company argues that its tech-first approach significantly reduces the barriers to entry for new brands seeking to penetrate the African market, where traditional distribution methods can be expensive and unreliable.
Fadilah Tchoumba, CEO of ABAN, commented on the investment, stating: “Sumet Technologies is revolutionising consumer goods distribution by facilitating market penetration for new brands and optimising supply chains across Africa. Their commitment to impact-driven innovation aligns with our mission to foster ventures that drive sustainable economic growth on the continent.”
A key example of Sumet’s impact is the rapid growth of its own insecticide brand, Ex-pido, which the company claims has become one of the top three insecticide brands in Tanzania, demonstrating the effectiveness of its distribution network.
Looking ahead, Sumet has ambitious plans for expansion, including the launch of a complete product range under the Ex-pido brand and the introduction of new brands to fill identified market gaps. The company is also actively exploring opportunities to expand its operations into other African markets, with a long-term goal of establishing itself as a leading pan-African FMCG distribution platform.
Sumet was co-founded by Mr Afify, who has a background in technology and supply chain operations, alongside Abdallah Omar, the Chief Commercial Officer with over two decades of experience in market expansion, and Mahmoud Tawfik, the Chief Technology Officer who brings extensive experience in technology from companies such as Aramco and Schneider Electric.
“Our focus is not just on growth metrics, but on meaningful impact,” said Mr Omar. “We’re empowering local entrepreneurs by providing them with access to a wider range of products and the tools they need to succeed. At the same time, we’re building an ecosystem where businesses thrive and communities prosper.”
Mr Tawfik emphasised the role of continuous innovation in Sumet’s strategy. “We are continuously developing new solutions — from predictive analytics to robust distribution networks — to meet the market’s evolving needs,” he said. “Our technology platform is the backbone of our operations, allowing us to scale efficiently and deliver lasting value to our partners.”
As Sumet Technologies embarks on its next phase of growth, the pre-seed funding will be crucial in solidifying its position in the Tanzanian market and laying the groundwork for its broader African ambitions. The company’s innovative approach to FMCG distribution highlights the potential for technology to address long-standing challenges in African commerce and unlock significant economic opportunities.