MarketForce gets $40m an initial $2m funding
By Jeph Ajobaju, Chief Copy Editor
MarketForce has kick started its retail distribution expansion beyond Nigeria and Kenya to carve out more markets in East and West Africa, after raising $40 million in Series A funding for merchant inventory financing.
The funding combines debt and equity, and comes seven months after the startup raised $2 million in pre-Series A funding.
V8 Capital Partners, an African-focused investment vehicle based in London and Lagos, led the latest round of investment.
Other participants include Ken Njoroge, Cellulant co-founder who joins the MarketForce board as Chairman; as well as Ten13 VC, SOSV Select Fund, Vu Ventures, Vastly Valuable Ventures, and Uncovered Fund.
Existing investors who took part in the round include Reflect Ventures, Greenhouse Capital, Century Oak Capital, and Remapped Ventures.
MarketForce said it will introduce buy-now-pay-later (BNPL) option to enable easy access to fast-moving consumer goods (FMCGs) on credit especially as it seeks new markets.
It wants to leverage on its merchant super app RejaReja to enable digital payment for informal traders, from sourcing goods to finalising payment and accessing loans.
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Mission to help small businesses grow
MarketForce co-founder and CEO Tesh Mbalu said the mission is to help small businesses grow by providing them with loans to access goods through merchant inventory financing as well as overdraft facility that allows businesses to order goods and pay after selling them.
Mbaabu explained that the startup is deliberate about extending working capital, the reason it raised some debt, and it is looking at fintech as its big frontier for the next phase of business, according to Nairametrics.
MarketForce is also working to bring insurance, savings, and investment on board to strengthen financial services in Africa, he added.
Tobi Oke, V8 Capital General Partner and MarketForce board member, said the startup demonstrates a triple thread for returns.
He described the team as strong with an amazing track record with an expansive untapped market of informal retailers on the continent.