Kenyan startup MarketForce raises Ksh.4.5 billion funding

Kenyan retail and distribution firm MarketForce has announced that it has raked in $40 million (Ksh.4.5 billion) from a Series A round funding as it seeks to introduce credit services and expand across Africa.

With operations in Kenya, Nigeria, Uganda, Tanzania and Rwanda, MarketForce enables informal merchants to source goods directly from manufacturers and distributors as well as placing and paying for orders digitally through its RejaReja app.

Traders can also earn through reselling airtime, electricity tokens and bill payments and also access loans for their businesses.

“Our goal is be the ultimate partner for informal merchants, empowering them to maximize their profits and grow in a digital age by getting better service, assortment, and access to new revenue opportunities, outfitting them with the technology and support they need to transform themselves from simple FMCG outlets to comprehensive financial service hubs for the continent’s last-mile communities,” MarketForce Co-founder and CEO Tesh Mbaabu said.

According to the company, the round is the largest Series A round in East and Central Africa, coming just 7 months after the firm concluded a $2 million (Ksh.227 million) pre-Series A round. 

The round was led by V8 Capital Partners and saw the participation of Ten13 VC, SOSV Select Fund, Vu Ventures, Vastly Valuable Ventures, Uncovered Fund, alongside other existing investors.

The company said that the new funding will enable it to introduce buy-now-pay-later (BNPL) options to help traders access goods on credit. It also plans to enter additional markets in East and West Africa.

“We are targeting to serve over 1 million active merchants on our platform in Sub-Saharan Africa by 2025.” 

MarketForce says it currently serves 100,000 merchants and processes 6,000 daily transactions.

It aims at expanding its team to 800 and grow the number of merchants on the RejaReja app to 250,000 in the next few months.