Investor Updates: June 20 2022 - Egyptian B2B marketplace Fatura acquired by EFG Hermes unit

Egyptian B2B marketplace Fatura acquired by EFG Hermes unit

Highlights

• Egypt-based Tanmeyah for Microfinance Services, a subsidiary of EFG Hermes Holding, has acquired Fatura, a provider of B2B e-commerce marketplace and digital financing services for an undisclosed sum.
• Founded in 2019 by Hossam Ali, Ahmed Anwar and Abdullah Mohebeldin, Fatura connects retailers to suppliers and wholesalers. It initially started by working exclusively with FMCG retailers before venturing into other sectors.
• It previously raised a $3 million Series A round led by Sawari Ventures, Arzan VC, Egypt Ventures, Khawarizmi Ventures, EFG-EV and the Cairo Angels.

Source: Wamda

Our Takeaway

Huge amounts of venture investments are being poured into the B2B retail e-commerce space, where a host of startups like TradeDepot, Chari, MarketForce, Omnibiz, Alerzo, and others play. It’s easy to see why. More than $600 billion of consumer goods are sold in Africa through informal retail channels every year, supplying the vast majority of the 1.2 billion population yet the industry is faced with several challenges that can be addressed, profitably, with digitization. In another acquisition deal, Morocco’s Chari entered Ivory Coast through the purchase of Diago, a counterpart in the francophone country. 

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Autochek, Pezesha partner to provide asset financing to SMEs

Highlights

• Nigerian auto-tech startup Autochek has partnered Kenyan fintech Pezesha to enable SMEs in Kenya to access asset financing. 
• Founded in late 2016, Pezesha has created a holistic digital financial infrastructure that connects small and medium-sized businesses to working capital offered by banks, MFIs, and other financial institutions or networks.
• Having expanded to Kenya late last year, Autochek has now partnered Pezesha in a move that will enable SMEs to acquire auto assets for ease of business operations and growth.

Source: Disrupt Africa

Our Takeaway

Small and medium enterprises play a major role in most economies, especially in developing countries but access to finance has always been a major constraint to their growth. As many as 65 million firms, or 40% of formal MSMEs in developing countries, have an unmet financing need of $5.2 trillion every year, per the IFC. Many startups like Pezesha have found ways to profitably finance these businesses across the continent at reasonable interest rates, either through short-term loans or asset financing for necessary equipment.

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Amazon is planning a pan-Africa expansion

Highlights

• Amazon, a global e-commerce technology company, is reportedly set to expand to African countries including South Africa and Nigeria in 2023, according to multiple reports. 
• Belgium, Chile, and Colombia are also among the five markets that the giant e-commerce company is set to penetrate next year, according to leaked documents seen by Business Insider.
• This development would mean serious competition for companies that provide similar services to Amazon, like Jumia in the e-commerce space, and Netflix and Showmax in the video streaming market. Amazon currently has a presence in 20 countries.

Source: ITNewsAfrica

Our Takeaway

Africa is increasingly becoming an important growth area for streaming, e-commerce and cloud computing services, which explains why Amazon has launched an aggressive push into the continent. Digital TV Research, an analytics firm, estimates that Amazon Prime Video will add 1.5 million new subscribers in Africa by 2027, from an estimated 600,000 currently. Meanwhile, the Middle East and Africa’s cloud computing industry is expected to grow to $31.4 billion by 2026, from $14.2 billion in 2021, amid the growing appetite for cloud computing solutions on the continent.