JABU, a last-mile distribution e-commerce firm based in Namibia, has raised $15 million in a Series A round led by Tiger Global.
Tiger Global’s second investment in the B2B e-commerce industry comes after backing Wasoko in its mammoth Series B round, which was completed in March.
It’s also worth mentioning that this transaction took place before Tiger Global’s $17 billion loss during this year’s tech sell-off.
Box Group, Knollwood, D Global Ventures and FJ Labs are some of the other investors in this round. FJ Labs, Oldslip and Afore Capital were some of the seed round investors who doubled down.
According to Jwallet, businesses can order, stock and pay for their goods using Jwallet. They can also expect fast delivery the next day.
In January, the startup’s platform was used by over 6,000 merchants in Namibia, South Africa, and Zambia. This number has increased by 50% according to David Akinin CEO.
The firm provides data-driven services for banks and FMCG brands through dashboards such as sales analytics, agent productivity, and agent productivity.
Akinin explains that JABU allows you to deposit and withdraw money to your customers’ bank accounts.
The business integrates an API with banks to allow anyone who has money through their wallet to walk to a JABU store and withdraw it using their physical float.
Jwallet has many other components that work. Drivers who conduct distribution for the business’s 232 logistics partners and pay with the wallet can get asset financing and, for merchants, equity financing, according to the startup.
Akinin is more specific, and believes that the wallet system can be a long-term solution to the BNPL model other platforms provide to retailers.
This prejudice is rooted in JABU’s previous attempts to use the BNPL system, which led to defaults. Akinin described how merchants would leverage a platform’s BNPL service to create income, then use that profit to pay for the next invoice or buy merchandise from a new supplier in a different supply chain.
Jwallet solves this problem by collaborating banks to process digital payment and creating communities on the platform for merchants that can save and extend credit to each other.
This method also helps merchants to accumulate transaction histories and generate sufficient money to offer financial services to customers to repay their loans.
Much of what the Jabu wallet team is doing revolves around the community and the shop rather than the company’s finance sheet.
The team is thrilled about it as a product because we’re attempting to show that there’s a better way to interact with stores as we grow. Akinin
JABU will make use of the Series A financing to expand its presence in Southern Africa and open new markets like Botswana, Eswatini and Eswatini later in the year.
What sets Akinin’s company apart from the competition, he claims, is that it is building a much bigger ecosystem for startups rather than just a marketplace.
There is great hope in Africa that B2B E-Commerce will help speed economic growth, offer opportunities for small and large business, and foster greater market integration. B2B refers business-tobusiness transactions such as between a manufacturer or wholesaler and a retailer.
Significant advancements in African e-commerce have bolstered the case for B2B as the means to achieving the continent’s e-commerce possibilities.
These businesses are prospering and growing, while some B2C firms are shifting to B2B.
Although there have been many improvements to business operations, the challenges that store owners and kiosk operators face in receiving financing and goods from distributors and suppliers on a regular and timely manner are still present.
These startups have been able to speed up the process with apps and better distribution channels.