Cartona, an Egypt-based B2B e-commerce platform, has successfully raised $8.1 million in an extension of its Series A funding. The round was led by Algebra Ventures, with participation from current backers such as Silicon Badia and the SANAD Fund for MSME.
Cartona secured $5.6 million in equity and $2.5 million in debt, maintaining a solid financial position bolstered by a previous $12 million Series A round from Silicon Badia. The equity capital will be invested to accelerate growth in key areas, including Fast-Moving Consumer Goods (FMCG) and the Hotel, Restaurant, and Café (HORECA) sectors. Furthermore, Cartona plans to expand its market share, lay the groundwork for regional growth in the MENA region, and explore new B2B2C opportunities.
Camel Ventures and GlobalCorp provided debt financing for this round, successfully raising $2.5 million in local currency under competitive conditions. This funding will mainly support the working capital requirements of local retailers, many of whom struggle to secure financing through conventional methods.
“Our operational and financial metrics are all progressing very positively which has helped us to attract capital from existing and new investors…Our product rollout, verticals and offerings will continue to grow as will our penetration of the Egyptian market.” stated Mahmoud Talaat, CEO and Co-Founder of Cartona.
Founded in 2019 by Mahmoud Abdelfattah, Mahmoud Talaat, and Rafik Zaher, Cartona is transforming Egypt’s traditional trade landscape by linking small retailers, FMCG producers, wholesalers, and distributors via its digital platform. The company’s asset-light model, combined with a streamlined cost structure and robust unit economics, distinguishes it in a tough inflationary climate.
According to Omar Khashaba, General Partner at Algebra Ventures, “Cartona has built an exceptionally capital efficient model…The asset light nature of its model creates scalable infrastructure that can quickly be adapted for entry into new markets and adjacencies.”
Cartona’s platform currently supports over 188,000 retailers across 17 cities in Egypt. The company’s creative features, including the ability for small retailers to pool their orders and obtain financing, have enhanced its market share.
Alongside its core FMCG business, Cartona has successfully penetrated the HORECA sector, serving more than 3,000 clients. This swift growth illustrates the scalability of the company’s asset-light model, which is proving to be a significant competitive advantage.
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