Sabi, Africa’s fastest growing B2B marketplace, closed a $ 6 million funding round to boost its expansion.
A bridge round is a small round of financing to move a startup forward to its next larger round of financing.
The round was led by pan-African venture capital firm CRE Ventures. This funding round comes one year after the close of a $ 2 million funding round from CRE Ventures, Janngo Capital, Atlantica Ventures and Waarde Capital.
What you should know about Sabi
Anu Adasolum, former COO of Rensource, and Ademola Adesina, Founder and CEO of Rensource, founded the company in 2020. Sabi is working to solve the biggest problem of contributors’ access to the continent’s GDP by providing them with tools financial and business essentials such as loan services, performance reporting and digital inventory management.
Sabi also helps merchants on its platform find new customers, improve cash flow, streamline logistics and access select B2B service providers. Sabi serves as a link between companies and their customers. Sabi merchants process FMCG products as well as products from other industries such as agriculture, electronics and chemicals.
Over 175,000 merchants use Sabi and more than $ 200 million in B2B transactions have been completed. Sabi’s network is also served by more than 10,000 agents.
Sabi earns money by charging traders transaction fees when they make a sale in the market. The company also earns a margin to provide them with financing.
In terms of growth and expansion, Sabi is growing an average of 40% per month in Nigeria and intends to replicate this growth in other African countries like South Africa and Kenya. The startup is also aiming to launch a subscription model, in which agents would pay a monthly fee to gain access to a reseller platform.
What they say
Pardon Makumbe, co-founder and managing partner of CRE Venture Capital, said: âSabi’s online and offline approach to serving informal businesses, combined with the quality of its platform and the selection of its service providers, has clearly taken root in Nigeria. The company is on track to be one of Africa’s fastest growing companies in 2021 and shows no signs of slowing down. “