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Betastore Gets $2.5M To Solve Stock-Outs, Financing Challenges For Informal Retailers In West And Central Africa

Betastore Gets $2.5M To Solve Stock-Outs, Financing Challenges For Informal Retailers In West And Central Africa

05/30/22, 7:00 AM
Money raised
$2.5 million
Industry
commerce and shopping
Round Type
seed
About 80% of household retail in sub-Saharan Africa is delivered through informal channels, which perennially face several challenges like stockouts, leading to an instability in earnings, and a lack of attractiveness to financiers. These challenges befall millions of micro-retailers across the continent, and Betastore, a B2B retail marketplace for informal retailers, is working to resolve in Nigeria, Ivory Coast and Senegal.

Company Info

Company
Betastore
Additional Info
The startup plans to provide these services beyond its current three markets by expanding to Ghana, the Democratic Republic of Congo and Cameroon by the end of this year, after closing $2.5 million in pre-series A funding from 500 Global, VestedWorld, and Loyal VC. Dakayi-Kamga said that this has helped the startup to optimize its technology to ensure that retailers source goods from the closest distributors. The B2B ecommerce platform is set to introduce financing in July, a launch that follows a pilot program involving 200 retailers that the startup carried out last year. The startup plans to charge an interest based on product margins. Since launch, the startup claims to have grown its customer base and revenues by 10 and 12 times, respectively. The startup anticipates greater growth especially after entering more countries and rolling out its buy now pay later (BNPL) product, as it taps the retail market in sub-Saharan, which was valued at $380 billion in 2021, contributing 20-50% of the region’s GDP on average.“We want to simplify access to goods and services for the retailers and for the end consumer because we see the merchant as an agent able to make access to goods and services easier. The asset-light model means Betastore does not have any capital and labor intensive assets like warehouses or its own fleet of vehicles for delivery. On average, a retailer using Betastore makes 4.4 orders per month.