MaxAB serves a network of traditional retailers in Egypt, using empowering technologies and innovative supply chains to help put the right amount of food and groceries at their stores. They have 9,000 merchants on their app and are growing at 50% month-on-month.
The startup aims to expand its physical footprint, scale recently launched business verticals including new supply chains and embedded finance solutions. They also plan to acquire WaystoCap, a Moroccan B2B e-commerce marketplace that connects retailers and suppliers.
While other e-grocery platforms are focused on delivering products to retail customers, MaxAB is going after the vastly larger business-to-business (B2B) market. The startup recently secured $6.2 million in a seed round co-led by Beco Capital and 4DX Ventures.
The investment will help MaxAB scale its e-commerce platform and offer new services like working capital financing for small retailers. It also will allow the company to deepen its knowledge of the informal food and grocery sector, which is a significant segment of Egypt’s $50 billion economy.
Founded in 2018, maxab—a play on the Arabic word for gain—connects manufacturers with shopkeepers, helping them manage inventory and avoid costly price fluctuations. It also saves store owners like Abeer from making frequent, expensive trips, often on foot, to distant wholesalers.
2. Product Variety
Launched in 2018, the Egyptian startup MaxAB has already reportedly helped automate and simplify Egypt’s $45 billion FMCG food retail market for thousands of traditional retailers. The company’s app allows small shop owners to order stock online, eliminating middlemen who often inflate prices.
Maxab has its own warehouses and distribution fleets, which the company says improves delivery reliability. It also uses internal technology tools to optimize the flow of inventory in, within and out of its warehouses.
MaxAB has also expanded to provide merchants with financial services, including working capital. But unlike its competitors, Maxab opted to do this through bill aggregation rather than by offering credit facilities directly to its customers.
B2B ecommerce startup MaxAB is transforming the food and grocery supply chain in Egypt, empowering merchants through a variety of embedded finance products and services. The platform connects traditional retailers and fast moving consumer goods suppliers.
The firm’s technology and operational expertise allow them to optimize inventory management practices in the informal retail market, improving reliability for merchants. Their focus on the supply chain has also enabled them to improve the quality of products they deliver.
MaxAB recently raised a $40 million Series A round, the largest financing round for an Egyptian startup in 2020. It was led by RMBV, a North African impact investor with participation from IFC, Flourish Ventures, Crystal Stream Capital, Rise Capital, Endeavour Catalyst and existing investors Beco Capital and 4DX Ventures.
Founded by former Careem and Aramex executives, MaxAB is one of the most powerful start-ups in the Egyptian market. The company serves a network of traditional retailers by allowing them to source products at the best price and receive on-demand delivery service.
It also optimizes inventory management practices by using real-time demand monitoring and sales forecasting to democratize the supply chain for small merchants. Moreover, it offers embedded finance solutions to support those in need.
The recent $40 million pre-series B round was led by impact investor RMBV with participation from Silver Lake, British International Investment and ADQ’s venture platform DisruptAD, as well as existing investors Beco Capital, 4DX Ventures, Flourish Ventures and Africa Platform Capital. The funds will help the Cairo-based company to scale its e-commerce business in North Africa and hire more people, a release says.
Using technology to optimize the food and grocery supply chain can transform how companies do business. MaxAB has embraced this concept by connecting suppliers with traditional retailers in underserved areas through its B2B e-commerce platform and offering embedded finance solutions, transforming the $50 billion fast-moving consumer goods market.
Founded in 2018 by Belal El-Megharbel and Mohamed Ben Halim, the startup serves a network of more than 150,000 traditional retailers across Egypt. It raised $55 million in two Series A rounds last year and acquired Morocco-based WaystoCap to expand its operations into the Maghreb region.
By enabling shop owners to access a range of products and services online, the company has eliminated the need for them to barter with middlemen. This allows them to cut costs, increase sales and improve profitability.