Cartona secures USD 8.1 million in Series A extension fundraise

Following a USD 12 million Series A funding from July 2022, the current fundraising was led by Algebra Ventures, with participation from existing investors such as Silicon Badia and the SANAD Fund for MSME. The newly acquired investment, which includes equity and debt capital, is set to be leveraged to further support and accelerate Cartona’s expansion and development in different verticals. The company plans to utilise the equity capital, consisting of USD 5.6 million, to enter HORECA and FMCG industries, increase its market share, solidify its capabilities for regional expansion into additional markets in MENA, and look into potential B2B2C prospects.

Furthermore, the round includes USD 2.5 million in debt capital from Camel Ventures and GlobalCorp, which is part of Cartona’s strategy to retain a diversified source of capital. As detailed in the press release, the debt was secured in local currency with competitive terms. It is set to support the firm in achieving its working capital requirements for local retailers for whom it would have been difficult to access capital. Through its asset-light business model, with a lean cost base and advanced unit economics, Cartona focuses on reaching experience levels on par with asset-heavy operating models.

According to Cartona’s officials, the company’s current funding follows positively progressing operational and financial metrics, with it being committed to providing its strategy, including improving the traditional trade market and delivering value, to participants in the marketplace. By introducing additional products, entering new verticals, and overall improving its offering, Cartona intends to further expand its capabilities and footprint in the Egyptian market. Also, the firm plans to support the traditional retail market to become more efficient by simplifying the distribution process, and directly connecting retailers with wholesalers, suppliers, and FMCGs.

Moreover, by integrating Cartona’s technology, retailers and suppliers are set to be able to better manage stock and working capital through cash or credit orders. The company’s solutions can be leveraged for ordering, inventory management, branding, Embedded Finance, ledger, and tax.

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