TradeDepot partners with Novastar
TradeDepot has announced its $110m Series B round just 18-months since its Series A raise. IFC co-led the round with Novastar, Sahel Capital, CDC Group, Endeavor Catalyst participated, as well as existing investors Partech and MSA Capital.
TradeDepot is a leading tech-enabled B2B marketplace that provides a full-stack solution for small, informal retailers, supplying them daily with consumer products and credit to expand their businesses. The company owns its warehouses and fleets of drivers to carry out distribution.
This round is the largest for any B2B e-commerce platform in Africa at the moment, both in equity and debt. The company was one of the earliest players in the space, starting out distributing milk to small retailers in Lagos, Nigeria. TradeDepot has since embedded digital wallets and financial services as part of its offer. Its Buy Now Pay Later (BNPL) service is embedded within the company’s ShopTopUp platform, where retailers can access a credit line for all consumer goods, helping them secure business growth.
CEO Onyekachi Izukanne explained the additional services customers could now utilise: “We think that these embedded financial services will be a key part of this narrative: Supply chain on the one hand, and everything related to financial services to make these businesses work on the other. We think they go together. And the last year and a half have been defined by us focusing on bringing more of these embedded finance products to market.”
Founded in 2016, TradeDepot is today active across Accra, Johannesburg and ten cities in Nigeria. The funding will enable the company to redouble its activities in existing markets while expanding further into Nigeria.
Read more in TechCrunch: TradeDepot raises 110m from IFC, Novastar to extend BNPL service to merchants across Africa