Betastore Secures $2.5 million in funding

Betastore, a Nigerian startup, has raised $2.5 million in pre-series A funding to help it expand to Ghana, the Democratic Republic of the Congo, and Cameroon before the end of the year.

The investment came from 500 Global, VestedWorld, and Loyal VC, bringing the company's total funding to $3 million.

By removing contacts with sales middlemen, the Betastore marketplace allows entrepreneurs to purchase fast-moving consumer goods (FMCGs) directly from suppliers or distributors, keeping retail prices competitive. It also collaborates with logistical partners to ensure that the products arrive within 24 hours.

The funding will be used to expand Betastore's reach beyond its current markets by the end of the year, including Nigeria, Ghana, the Democratic Republic of Congo, and Cameroon. 

Steve Dakayi-Kamga, co-founder and CEO of Betastore, said the company is committed to using its "asset-light" approach as it expands into new markets across Africa, including Ivory Coast, and Senegal.

“Our technology enables retailers to order on demand, access a variety of products, and solve logistics headaches for them too. With Betastore, they don’t have to close their shops to go get goods from distributors stores or the market, and do not have to lose close to half of the margins in the logistics,” he added.

The B2B e-commerce marketplace will debut financing in July, following a trial program with 200 businesses that the startup conducted last year.

The BNPL financing approach will be focused on merchant sales, and it will go a long way toward assisting them in determining the productivity of their businesses. Interest will be charged based on product margins, according to the startup.

Since its inception, the company claims to have increased its customer base and revenue by ten and twelvefold, respectively. As it targets the $380 billion retail market in Sub-Saharan Africa, the business forecasts significant growth, particularly after entering more countries and putting out its buy now, pay later (BNPL) product.

BetaStore assists informal businesses in gaining greater access to products at wholesale prices, delivers to their locations, and can aid with operating cash. In Africa, the wholesale and retail industry is about $270 billion dollars, with over 90% of sales conducted through informal channels. Retailers don't have to close their stores to go to open marketplaces and visit dozens of suppliers to acquire basic commodities using BetaStore.

Second, in order to get decent deals, they don't need to purchase more goods than they require. Finally, doing business with these retailers allows the startup to better assess their risk profile, provide customized payment options, and make them more available to commercial lenders.