U.S. and Nigeria-based firm TradeDepot, which connects consumer goods brands to various retailers and supports distribution, has reportedly raised USD 110 million in Series B round in the form of equity and debt capital to onboard more retail stores and extend its buy now pay later (BNPL) service in Africa.

The Series B investment is the largest in both equity and debt financing for any B2B e-commerce platform in Africa. Although the company did not disclose the equity-to-debt ratio, data from the SEC filing indicates the equity share is around USD 42 million.

The company began as a milk supplier to small shops in Lagos, Nigeria, and was one of the first in the field. It has now become a B2B platform that connects small businesses, kiosks, and retailers with consumer brand wholesalers worldwide who provide food, beverages, and personal care items. The firm also owns its own warehouses and fleets of drivers to carry out the distribution.

TradeDepot's focus over the last five years has been on integrating technology into the supply chain and onboarding retailers one by one. The company now offers several products, including digital wallets and financial services, especially credit or BNPL offerings.

The ‘Buy now pay later’ service is integrated into the firm’s ShopTopUp platform, which gives retailers access to a credit line for any consumer goods purchased through the app.

A huge number of small and medium-sized ‘offline’ businesses in Nigeria and across Africa generate USD 1 trillion in sales annually and contribute USD 2.6 trillion to the continent’s nominal GDP, presenting a massive opportunity for companies like TradeDepot.

Currently, the company operates in 12 cities in Nigeria, Ghana, and South Africa (Accra, Johannesburg, and ten cities in Nigeria). With the funding, the company plans to expand its operations in these three economies and expand its footprint across Nigeria to reach more of the 5 million SMEs that it considers its target market.

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https://techcrunch.com/2021/12/06/tradedepot-raises-110m-from-ifc-novastar-to-extend-bnpl-service-to-merchants-across-africa/