Ever since JUMIA, African eCommerce has mostly been the prerogative of Nigeria, the world’s most populous black nation and Africa’s economic powerhouse.
Not that eCommerce activities have been MIA in other African countries. There’s Sokowatch in Kenya, Takealot in South Africa, and even JUMIA has operations in lesser-known nations like Tanzania and Côte d’Ivoire.
But when it comes to funding for eCommerce startups, Egypt’s arguably in the middle of a watershed.
Since last year (2020), early-stage ventures in the country’s online commerce space have raised pre-seed, seed, and Series A rounds. Surely, that suggests something’s off to a start.
Egypt probably now has the highest amount of disclosed eCommerce funding deals in the continent. More so, fundraising records in the space have been broken, size-wise.
Flextock, an eCommerce fulfillment (needless to say logistics) startup raised USD 3.25 Mn in the largest-ever pre-seed round in not just Egypt, but the entire Middle East and North Africa (MENA) region.
Although, currently, Telda—an Egyptian digital banking startup co-founded by Swvl’s co-founder/former CTO, Ahmed Sabbah—holds the record for MENA’s largest pre-seed investment.
Pending a proper Egyptian eCommerce deep dive, Flextock is a great place to start looking into what’s happening in the sector. The startup was founded just last year as was part of YC’s Winter 2021 batch!
So, I contacted CRE Venture Capital, one of the VCs that participated in the company’s seed round. From the insights gotten, it does seem that startups like Flextock may be onto a goldmine in the Egyptian eCommerce landscape.
Source: Wee tracker