Egyptian e-commerce startup MaxAB is specializing in linking traditional retailers with suppliers of products such as food and groceries. It has completed a Series A funding round and plans to expand its services in North Africa and the Gulf region.
Founded in 2018 and headquartered in Cairo, MaxAB is a one-stop supplier for a network of mom-and-pop stores in Egypt’s greater Cairo and Delta regions.
According to a report on Monday, the firm stated it raised $40 million from RMBV and seven other firms including International Finance Corp. and Flourish Ventures. The company is planning to use the proceeds to help extend its operations to all of Egypt’s major cities by year-end.
El-Megharbel, the chief executive officer of MaxAB, said that the startup will expand internationally in the next few months. He considers the Middle East and North Africa (MENA) to be the new Southeast Asia because of the massive growth potential he sees.
“It has a relatively young population that’s rapidly growing, access to capital and talent is improving significantly, and digitization initiatives across the region are catalyzing the growth of tech companies,” the chief executive officer said.
In the last year, MaxAB has seen annual revenue climb more than fivefold. After the digital payments provider Paymob and the trucking app Trella, MaxAB is the next most popular business-to-business platform for international capital investment.
Meanwhile, delivery and logistics businesses have also received benefits from the COVID-19 pandemic. Recently, more and more investors are seeking to enter growth sectors in the Arab world’s most populous nation.
In addition to existing investors, others including Crystal Stream Capital, Rise Capital, Endeavour Catalyst, Beco Capital, and 4DX Ventures also supported MaxAB’s fundraising.
According to Ahmed Bedreldin, a managing partner at lead investor RMBV, as well as previously a partner at Dubai-based Abraaj Group, the COVID-19 pandemic, “has highlighted the unique structure of Egypt’s economy, with hundreds of thousands of shopkeepers and small businesses becoming the lifeline of our country at the time of crisis.”