Egyptian B2B e-commerce platform Cartona has secured an additional $8.1 million in funding. This Series A extension brings the total raised to $20.1 million. The investment is a mix of equity ($5.6 million) and debt ($2.5 million).

Algebra Ventures led the round, with participation from existing investors Silicon Badia and SANAD Fund for MSME. Camel Ventures and GlobalCorp provided the debt financing.

Cartona plans to utilize the funds to expand its market share in Egypt, particularly within the FMCG and HORECA sectors. Potential expansion into Saudi Arabia and exploration of new product lines within Egypt are also on the horizon. Notably, the company entered this funding round with a substantial cash position, indicating financial health and strategic investment.

Why the Investors Invested

• Profitability: Mahmoud Talaat, Cartona’s founder and CEO, stated that the company is “very close to reaching full EBITDA profitability.” This financial performance is attractive to investors, as it demonstrates a sustainable business model.
• Asset-Light Model: Cartona’s asset-light approach has allowed them to scale rapidly, as evidenced by their annualized gross merchandise volume (GMV) increasing from EGP 2.3 billion ($120 million) in 2022 to EGP 10 billion ($210 million) currently. This scalability is appealing to investors seeking high-growth potential.
• Market Potential: The Egyptian retail market, valued at $120 billion, presents a vast opportunity for growth in B2B e-commerce. Cartona currently covers only 2–4% of the market, indicating significant room for expansion.
• Financial Inclusion: Cartona’s embedded finance component, which constitutes over 20% of their GMV, has grown significantly from 2–3% in 2022. This demonstrates their success in promoting financial inclusion among small retailers by providing access to credit.
• Proven Track Record: Cartona’s consistent growth, expanding from serving 60,000+ retailers in 2022 to over 180,000 retailers currently, showcases their ability to execute effectively and acquire customers in a competitive market.
• A Promising HORECA Sector: Cartona’s expansion into the HORECA sector demonstrates the platform’s ability to leverage its existing infrastructure and supply chain to enter new markets. The higher average order value and take rates associated with this vertical offer promising growth prospects.

A Look at Cartona 

Founded in 2019 by Mahmoud Talaat, Mahmoud Abdel-Fattah and Rafik Zaher, Cartona is a four-year-old B2B e-commerce platform primarily operating in Egypt. 

Cartona is a B2B e-commerce platform that connects retailers with suppliers and wholesalers in the Fast-Moving Consumer Goods (FMCG) and Hotel, Restaurant, and Café/Catering (HORECA) sectors. They offer a range of services, including inventory financing, logistics, and data analytics, to help businesses optimize their operations and grow their sales

The platform has experienced rapid growth, with annualized gross merchandise volume increasing from EGP 2.3 billion in 2022 to approximately EGP 10 billion. It serves over 180,000 retailers who manage over 40,000 SKUs through the platform. Cartona’s embedded finance solutions have also gained traction, with over 20% of GMV now involving credit transactions.

Despite the competitive landscape and challenges faced by the broader B2B e-commerce industry, Cartona’s strong performance, strategic focus, and financial health have positioned it for continued growth and expansion.