Maad, a Senegalese startup, has announced the close of a $3.2 million seed funding round consisting of both debt and equity. Maad is one of the fastest growing tech & logistics platform for informal retailers in Francophone Africa.
This seed round saw the participation of Seedstars International Ventures, Reflect Ventures, OuiCapital, Launch Africa, Voltron Capital & Alumni Ventures. Proparco and local banks participated in the debt financing.
Maad’s solution allows retailers to order products from a one-stop shop, with reliable delivery, competitive prices while benefiting from working capital loans. It uses its distribution infrastructure to offer additional high-value services to brands: data, software, and services for advertising, distribution, and market understanding.
“Among startups operating in this space, Maad benefits from a clear first-mover advantage in Sub-Saharan Francophone Africa. We often say this is a blue ocean. As the fastest-growing player in the region, we are well-positioned to maintain our leadership and continue driving transformation in this underserved market,” said Sidy Niang, Co-founder & CEO of Maad.
Maad currently operates in Senegal where it has partnered with over 80 suppliers and reached a monthly Gross Merchandise Value (GMV) of $3 million. The startup plans to use the funding to expand across Senegal and introduce a Buy Now, Pay Later solution through a digital Wallet. It also plans to expand outside Senegal.
“Small retailers are central to neighborhood life and to Senegal’s economy. Maad builds scalable digital technology and core logistics infrastructure so that these retailers can make everyday-need products consistently available to people who make less than $5 a day,” added Jessica Long.
She continues, “Maad’s strength lies in its technology. We have built a fully in-house ERP, for order, delivery & warehouse management that fits perfectly with our operations, allowing us to operate more efficiently at every single step of the logistics chain. We also collect data points on product & retailers, which we process and use to make insights available to suppliers so that they can make better decisions”
“Maad’s innovative approach to digitizing the informal retail sector in Francophone Africa has the potential to create a significant impact on the lives of small business owners and consumers,” said Dotun Oloworopoku, Managing Partner at Ventures Platform. “We are thrilled to lead this investment round and support the Maad team as they work towards building a more efficient and inclusive retail ecosystem in the region.”
Charlie Graham-Brown, Seedstars International Ventures Partner shared, “What sets Maad apart is their ability to navigate the complexities of the informal retail sector while maintaining a sustainable business model. Their focus on profitability and efficient use of capital, combined with their first-mover advantage in a largely untapped market, makes them an attractive investment opportunity. We believe that Maad has the potential to drive significant economic impact and create lasting positive change in the lives of retailers and consumers across the region.”
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