Cartona closes series A extension round: Local B2B e-commerce platform Cartona has raised USD 8.1 mn in a series A extension round consisting of USD 5.6 mn in equity capital and USD 2.5 mn in debt, the company said in a press release yesterday.

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The backers: The round was led by Algebra Ventures with participation from returning investors VC firm Silicon Badia and Finance in Motion’s Sanad fund. The debt component came from Camel Ventures and GlobalCorp.

Where’s the money going? Cartona will use the funds to grow its market share by expanding its operations in fast-moving consumer goods (FMCG) and hotel, restaurant, and café/catering (HORECA). It also seeks to expand in the MENA region — including in Saudi Arabia — as well as explore B2B2C operations, founder and CEO Mahmoud Talaat told TechCrunch.

Cartona? Founded in August 2020, Cartona operates a digital marketplace that connects retailers with wholesalers, suppliers, and FMCGs. It seeks to digitize the traditional trade market – including mom-and-pop stores, hotels, restaurants, cafes, FMCG companies, and wholesalers.

Remember: The company raised USD 12 mn in a series A round led by Silicon Badia in July 2022, following a USD 4.5 mn pre-series A round in September 2021.

The company attributes its profitability to its asset-light business model: “Cartona’s asset-light business model, with a lean cost base and compelling unit economics, remains a major competitive differentiator — especially amid an inflationary environment,” the statement reads. We took a deep dive into what sets asset-light B2B e-commerce players apart from their asset-heavy competitors here.

What more? Founder Mahmoud Talaat was our Founder of the Week in 2022 — he spoke to us about Cartona’s mission and goals.

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