MarketForce raises $2 million in pre-Series A funding to scale its B2B e-commerce marketplace for merchants
MarketForce raises $2 million in pre-Series A funding to scale its B2B e-commerce marketplace for merchants
After raising $350,000 in seed funding and receiving a $150,000 check from Y Combinator as part of the accelerator's Summer 2020 batch, Kenya's MarketForce has raised an additional $2 million to focus on its business-to-business (B2B) retail marketplace, bringing the company's total funding to $2.5 million.
The round was co-led by P1 Ventures, Y Combinator, Launch Africa, V8 Capital, Future Africa, GreenHouse Capital, Rebel Fund, and Remapped Ventures, among other unnamed investors.
MarketForce, an end-to-end retail distribution platform, was founded in 2018 by Tesh Mbaabu and Mesongo Sibuti, respectively as Chief Executive Officer (CEO) and Chief Technology Officer (CTO). They founded the company in response to their observations of fragmented distribution networks and stores in small retail establishments.
The company distributes digital financial services and FMCG goods through fast-moving consumer goods (FMCG) distribution networks, as many Kenyans visit these stores for financial needs.
Likewise, the stores serve as distribution points for financial services.
Also, these stores assist customers in obtaining a variety of financial services, including payments, savings, remittances, and insurance.
According to TechCrunch, the retail startup was accepted into Y Combinator due to their use of FMCG distribution networks. MarketForce, on the other hand, decided to experiment with the RejaReja model following graduation from Y Combinator's Summer batch.
In 2020, the RejaReja model, a business-to-business e-commerce marketplace for merchants, was launched to assist informal retail merchants in purchasing and selling FMCGs and digital financial services.
MarketForce's entry into the B2B e-commerce market places it alongside a growing list of startups such as TradeDepot and Sokowatch that are attempting to reinvent supply chain markets for Africa's informal retailers.
RejaReja offers next-day delivery on hundreds of stock-keeping units (SKUs) from a handful of fast-moving consumer goods (FMCG) brands. According to the founders, RejaReja represents the majority of the company's best opportunities.
MarketForce acquired Digiduka
MarketForce acquired Digiduka, a retail platform founded in Kenya, in June 2021.
Digiduka enables retailers of digital services like airtime, electricity tokens, and bill payment to easily resell their products on the platform.
MarketForce's acquisition of Digiduka enabled it to fully integrate with RejaReja, a mobile wallet that enables retailers to act as payment and collection agents via a mobile app, WhatsApp bots, and USSD shortcodes.
MarketForce plans to launch RejaReja in Nigeria and then expand the service to additional East African cities.
RejaReja operates in Kenya, Uganda, and Tanzania, where it claims to process thousands of orders daily on behalf of more than 15,000 retail customers.
Mbaabu and Sibuti initially struggled to scale the company due to their lack of experience in retail distribution, eCommerce, and fintech; however, the company claims to have experienced team members.
While retail distribution is a core business for the company, the CEO stated that finding the right talent and individuals willing to innovate and revolutionize the space has been an interesting challenge.
