TradeDepot in $3m deal by Partech to digitize FMCG sales to retailers in Africa
TradeDepot, the innovative SaaS platform for FMCG distribution in Africa, Thursday, announced $3 million in funding to drive use of technology in distributing goods across the informal retailers’ population.
Partech’s recently launched Africa Fund led the Series A round which will support the expansion of TradeDepot’s footprint in Nigeria and development in other countries. Since its founding in 2016, TradeDepot has successfully developed a 360° solution integrating all participants in the trade value chain: manufacturers, distributors and retailers.
TradeDepot is an integrated SaaS platform for Consumer Goods distribution in emerging markets. Headquartered in Lagos, the Company offers a full product suite for FMCG companies, distributors and retailers, delivering visibility and control over the route-to-market for manufacturers, inventory and logistics optimization for distributors and on-demand ordering and delivery for informal retailers.
TradeDepot was founded by Michael Ukpong, Onyekachi Izukanne, Ruke Awaritefe in 2016 with a mission to build the engine of retail distribution in Africa.
The solution quickly convinced first rank FMCG companies and has been deployed all over the country in distributors’ warehouses.
This first external funding round of investment will enable the team to drive aggressive product development and further deployment of the solution among FMCG companies and their customers.
Through TradeDepot’s platform, small retailers have a real time view of all prices and discounts available from every major brand; they can directly order products which are then delivered to them as the order is routed to the appropriate nearby depot. At the same time, manufacturers have full visibility over their distribution and can leverage the platform to optimize deliveries to their distributors, improve their pricing and have a direct channel towards their end-retailers.
According to co-founder and CEO of TradeDepot, Onyekachi Izukanne, “This first external funding round was critical for us: we have proven that there is a strong demand for such a distribution platform among consumer goods companies and retailers in emerging markets, and we now wish to use these funds to support our growth strategy”.
“For a very long time, consumer goods distribution in emerging countries with millions of small and informal retailers at the end of the supply chain has been very poorly addressed by existing tech platforms. We want to change this status quo: in Nigeria alone, this $340bn market loses more than $4bn every year due to a lack of visibility and the resulting waste in logistics, making retailers in African countries subject to some of the highest product distribution costs in the world. Our goal is to enable every convenience store in Africa to consistently receive their supplies at the best possible prices; to be THE supply partner for Africa’s retail outlets”.
“This is a game changer in the industry”, explained Cyril Collon, General Partner at Partech. “We couldn’t be happier to have TradeDepot as the first investment of our African fund, as it characterizes what we want to do in Africa in the coming years: support extraordinary entrepreneurs who leverage tech to solve pan-African problems.”
“At Partech, we are strong believers in tech platforms that digitize the huge informal markets that are present in Africa. TradeDepot is one of them: they are addressing the largest market in Africa, that is today 98% informal and 99% offline. The opportunity there is massive.” said Tidjane Deme, General Partner at Partech. “Partnering with TradeDepot was a no-brainer for us after the first meeting. We were fully convinced by the founders’ vision, their strong understanding of the market and their ambition to transform this industry. The deep market experience of Kachi, Michael and Ruke has proven to be very efficient in their first two years of development and we are extremely proud to come onboard and support them in this next phase of growth”.
