Betastore, a Nigerian startup, has raised US$2.5 million in pre-series A funding to help it expand to Ghana, the Democratic Republic of the Congo, and Cameroon by the end of this year.
The most recent round of funding was led by 500 Global, VestedWorld, and Loyal VC, bringing the total amount raised to $3 million.
Informal traders can use the Betastore marketplace to source fast-moving consumer goods directly from manufacturers or distributors.
By doing so, the startup keeps product prices competitive by removing interactions with sales agents. It also collaborates with logistics partners to ensure that goods are delivered within 24 hours.
The B2B e-commerce platform also plans to launch financing in July, following a pilot program with 200 retailers that the startup conducted last year.
“We believe Betastore’s talented team is creating market efficiencies that have the potential to boost the growth of Africa’s retailers. With Betastore, merchants can get greater transparency into wholesaler inventories and price points,” said Amit Bhatti, the principal at 500 Global.
Betastore uses the asset-light model because it does not have any capital or labor-intensive assets, such as warehouses or its own fleet of delivery vehicles.
This model has assisted the startup in optimising its technology so that retailers source goods from the nearest distributors. A retailer who uses Betastore places 4.4 orders per month on average.
“What is really important for us is to be able to continue to scale by leveraging our asset-light model. We plan to enter new markets before the end of the year and expand to 100 cities across Nigeria, Ivory Coast, and Senegal,” said Steve Dakayi-Kamga, Betastore CEO.
Betastore’s technology is currently being integrated into a network of financing partners, including fintech and banks.
Since its inception, the startup claims to have increased its customer base and revenue by ten and twelve times, respectively.