Sokowatch, a B2B tech-enabled company transforming the supply-chain of fast-moving consumer goods (FMCG) for the informal sector, has raised a $14m lead by Quona Capital, a US-based fintech VC fund for emerging markets, as well as 4dx Ventures.
The company, that started in Kenya, has created a platform that connects small informal shops directly to local and multinational suppliers — such as Unilever and Proctor and Gamble — by aggregating orders online via mobile phone, digitizing payments and optimizing delivery-logistics. Today, Sokowatch serves 6 cities across 4 countries in East-Africa (Kenya, Rwanda, Uganda, Tanzania) and is accelerating its expansion to other Africa markets.
Sokowatch is tapping into a huge opportunity to build a tech-enabled infrastructure for informal sector and the most-efficient distribution network for small shop owners, powered by data and technology. Indeed, 90% of grocery product volume sold in Africa is done via the informal sector, meaning the small shop owners, and the supply value chain that serves that is very fragmented.
The fund raised will be used to accelerate the growth and provide more value added services to small shop owners, like working capital to buy more and grow their business.
We, at Outlierz Ventures, are excited to be supporting Daniel and his team since early-stages, in digitizing this crutial segment of the economy across the continent.