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This article will cover various topics such as the Retail, E-Commerce, and Cryptocurrency industries in Egypt. The article also covers Pre-Series A funding, the Founders Fund, and the Cryptocurrency usage in sub-Saharan Africa.
The Founders Fund is no stranger to the VC community. Its latest investment is UAE proptech startup Huspy. As one of the world’s largest venture capital firms, it’s not surprising that it has made a few forays into the Middle East. However, it was the locals that showed up at its party, not the tourists. Here are a few of its notable entrants.
The Founders Fund’s maiden voyage was its first foray into the Middle East. For the time being, they’ll be focusing their resources on the techie stuff – ahem, a hefty bucket of venture capital and a hefty swag bag. They’ve also announced the largest round of funding they’ve ever raised in the region, a whopping $50 million in Series C equity. This is a big deal for a country where startup numbers are a rarity.
Pre-Series A funding
Pre-series A funding for your startup may not be a reality, but it’s a possibility nonetheless. To get your company off the ground, you’ll need a sizable slush fund to hire the best people and pay for the requisite technology. The top tier venture capital firms like Accel Partners, First Round Capital and Sequoia Ventures will have a hand in your journey to IPO or the next level.
A pre-series A funding for your startup is not only a good way to get your feet wet in the world of VC, it also provides critical early-stage cash infusions. In the case of a high-flying tech startup, pre-series A funding can make all the difference in the world. Besides, many companies never extend past the first round.
The right kind of funding can make or break your company’s chance of a successful launch, and it’s worth taking the time to do it right.
E-commerce market size in Egypt
E-commerce in Egypt is growing rapidly, and it is expected to become the largest eCommerce market in Africa. This is partly due to the rise in internet penetration in the country. But the industry is also being driven by a large population and an increasing number of people who are comfortable making online purchases.
The e-commerce market in Egypt is estimated to grow by 16% over the next three years. The Egyptian government has launched a series of programs to stimulate e-commerce in the country. It aims to double the number of businesses that sell their products online by 2020.
A new law will allow companies that make annual sales of more than EGP1 million to register for VAT, thus making it easier for them to comply with tax regulations. The law also allows electronic payments.
Retail market worth $120 billion
The retail market in Egypt is estimated to be worth more than $120 billion. The market includes both the FMCG industry and the food and beverage market. This makes it a lucrative market for startups aiming to solve supply chain challenges. However, the dynamic regulatory environment may restrain its growth.
One startup that is taking a shot at the market is Cartona. This e-commerce platform enables grocery retailers to order store needs digitally. Its app offers a dashboard of market insights, as well as a communication tool for promotions. Unlike traditional e-commerce sites, Cartona does not own a warehouse or inventory. Instead, it works with an extensive network of curated sellers.
As of last year, Cartona had a user base of about 60,000 and processed over 400,000 orders. It works with 1,500 wholesalers and distributors, as well as 200 FMCG companies.
Cryptocurrency usage in sub-Saharan Africa
Cryptocurrency usage in sub-Saharan Africa is growing and increasing at a fast pace. With a population of over 200 million people, the region is the fastest-growing crypto market in the world. In the past year, the value of cryptocurrencies in Sub-Saharan Africa grew over 1200 percent, and the volume of transactions increased by over 600 percent.
Despite a lack of regulatory support, the use of cryptocurrencies is expected to continue to grow. Currently, the region holds a small percentage of global crypto activity. However, the number of people holding crypto assets is high and could play an important role in facilitating economic activity on the continent.
Cryptocurrencies can be used for both remittances and commercial transactions. Remittances to the continent have been projected to increase by 4.2 percent this year.