This funds is in addition to the $3 million the company raised in 2018 which was also led by Partech. The company intends to use the new capital to continue its activity of integrating the fragmented retail supply chain in Nigeria. TradeDepot also plans to expand into other African cities and and launch a suite of financial products and credit facilities, to support its retailers.
The company launched in 2016 and has been very active in the retail space, building a network of over 40,000 micro retailers to date. TradeDepot also works with global distributors like Nestlé, Unilever, GB Foods and Danone. So they basically make household supply items like soap, detergent, milk and other essentials easily available and accessible for the informal markets it functions in.
How TradeDepot works is that a retailer orders and pays for goods using the company’s mobile app via Android or WhatsApp and then they get their orders delivered to them right at their homes – the company has a fleet of tricycles and motrocycles with which these deliveries are done.
Users of the platform can order, stock and manage their inventory online, whiles having the option of diversified avenues of payments which enables both digital and cash settlements. For consumer goods brands, TradeDepot facilitates direct-to-retail distribution in the massive informal sector in some of Africa’s busiest cities. The platform also runs a CRM and data management system that enables suppliers to plan and monitor their sales routes in real time, as well as gain invaluable insights into trade and retail data.
Retailers that work with TradeDepot have witnessed increased sales and revenue since their products now have direct market accessibility. Some retailers have seen as much as 15x growth in the sales figure improvement which has been unprecedented for many of them who have been in the retail business for more than a decade.
Onyekachi Izukanne, Chief Executive Officer and co-founder of TradeDepot says, “We are excited to strengthen our team and welcome on board some incredible strategic investors and partners, as we double down on our mission to digitize and simplify retail distribution for the continent. Africa’s offline retail market is estimated at $1 trillion, and this new investment allows us to capture an even greater segment of that market. We will continue to use data to drive efficiencies and provide an easier stock acquisition service for our 40,000+ retailers, driving down costs for them by negotiating even better deals with our global manufacturing partners, whilst simultaneously providing a better, faster route to market for our suppliers.”
Random African loves writing about the African continent. He is consistently in touch with happenings in every part of the continent and derives joy from providing fresh and crisp information for his audience.