Egypt's Mazaya, a business-to-business e-commerce marketplace focused on electronics, said it raised $5 million in an early-stage funding round to back its expansion plans.
The pre-seed funding round was led by Raya Trade & Distribution, a subsidiary of Egypt-listed Raya Holding for Financial Investments, Mazaya said in a statement on Tuesday.
The start-up will use the funds to expand its operations in Egypt, grow in new markets and "potentially" venture into other business segments.
"The funds raised will allow us to quickly scale our operations and expand to other markets beyond Egypt; we have plans to launch our services in Nigeria before this year-end," Amir Aboul Fotouh, Mazaya's co-founder and head of operations, said.
Venture funding and deals hit a record high in Egypt last year, with $491m invested across 147 transactions, start-up data platform Magnitt reported.
Revenue in Egypt’s e-commerce market is projected to reach $7.74 billion this year and increase at a compound annual growth rate of about 19 per cent between 2022 and 2025, German market and consumer data platform Statista reported.
Mazaya provides retailers and merchants of electronic goods and home appliances the ability to procure inventory for their stores through its app from all major brands at competitive prices and offers access to value-added services, according to its website.
Since its launch in Egypt in 2021, Mazaya has worked with more than 6,000 retailers, fulfilled 30,000 orders achieving a gross merchandise value of $15m and currently has more than 1,000 stock-keeping units on the platform.
Mazaya plans to offer financial services to retailers to help them scale their business by providing various credit facilities and flexible payment terms, in addition to assisting them in managing their financials efficiently by offering collection and payment services, the start-up said.
It also aims to provide retailers and merchants with services to help them facilitate and grow their businesses, positioning Egypt as a leading technology hub.
“The platform conveniently supports merchants, particularly small merchants who do not receive adequate services, with the ability to scale their business through a superior level of service and a wide range of electronic devices from all international and local brands at the click of a button," Bassem Megahed, chief executive of Raya Trade and Distribution, said.