Four Ghanaian digital commerce ventures receive funding from Catalyst Fund

The Catalyst Fund Inclusive Digital Commerce Accelerator welcomed four Ghanaian digital commerce companies,  OZÉ, Shopa, Swoove, and Tendo, as the second cohort to receive funding and support.

The Accelerator, managed by BFA Global in partnership with the Mastercard Foundation and the Meltwater Entrepreneurial School of Technology (MEST), focuses on building the resilience of Ghana’s micro and small enterprises (MSEs).

The companies selected for the second cohort are tackling challenges across the retail sector for Ghana’s informal MSEs. Their  focus is on enabling the digital transformation of MSEs through solutions including digital logistics, delivery services, digitization of merchant records, inventory management, and access to affordable inventory financing.

Each of the four companies will receive up to US$120,000 in grant funding, in addition to bespoke expert-led venture acceleration support, connections with Catalyst Fund’s growing global Circle of Investors and Circle of Corporate Innovators, and in-market expertise from MEST.

“Informal MSEs, many of whom are youth and women, get by using a piecemeal approach to digital commerce, often marketing via Facebook, Instagram and WhatsApp, taking in-person payments and manually addressing delivery, which is costly and puts the risk and heavy lift on the retailer. Companies like OZÉ, Shopa, Swoove, and Tendo are solving this problem with easy-to-use and affordable digital commerce services  and are spurring the expansion of the digital commerce ecosystem in Ghana,” said Jane del Ser, Program Director for the Catalyst Fund Inclusive Digital Commerce Accelerator.

Initial research on urban and peri-urban retail shops around Accra conducted at the launch of the program found that areas of most significant opportunity for Ghanaian digital commerce innovation include online and niche marketplaces, tech-enabled integration for logistics and delivery, digitization of inventory management and purchasing, and trust-building solutions. While the first cohort – Boost Ghana and KudiGo – focused on solutions working to digitize.

• OZÉ enables MSEs to become better businesses and better borrowers. Businesses keep digital financial records on OZÉ which in turn provides them with the insights and information they need to make better decisions. This improves their performance and enables them to access much-needed formal credit such as for inventory financing. 97% of high-active OZÉ users were growing, profitable or both.
• Shopa is redefining Africa’s informal retail distribution and supply chain by connecting last-mile retailers with suppliers, and enabling access to stock on cash or credit. Leveraging digital tools and an integrated delivery network, Shopa helps informal retailers to restock and receive delivery within 4 hours, without ever leaving their shop.

• Swoove connects e-commerce businesses with accessible logistics services at an affordable price, through its app and USSD short code, while creating opportunities for youth and female entrepreneurs and revenue streams for households. Swoove already partners with MTN and has the potential to be an enabler for the larger digital commerce ecosystem to address logistics challenges.

• Tendo enables anyone in Africa to sell online with zero upfront inventory – their platform connects dropshippers to wholesalers. The sellers on the platform are able to source products through Tendo and resell items using social commerce tools, such as WhatsApp, arrange delivery and get paid, all through the Tendo mobile app.

“Ghana’s informal micro and small enterprises hold the key to unlocking work opportunities and  supporting the livelihoods of thousands of young Ghanaian women and men. By accelerating the inclusive growth of promising digital commerce solutions, informal MSEs will have options to adopt digitization in a manner that suits their needs, enabling growth and achievement of their aspirations, ” said Chirag Shamdasani, Innovation Lead, Ghana, at the Mastercard Foundation.

Each company in this cohort was approved by the Investment Advisory Committee, comprising representatives from Acuity Ventures, Chandaria Capital, 4DX Ventures, Golden Palm Investments, mPharma, and Novastar Ventures.

Africa Startup Summit 2022

The fourth edition of Africa Tech Summit comes to Nairobi on February 23rd – 24th 2022 and the Africa Start-up Summit will again bring together stakeholders in the tech space across the continent to explore opportunities and challenges within the ecosystem, while showcasing investment opportunities. The focus of the track will be on encouraging collaboration, with the aim of furthering the development of Africa’s vibrant entrepreneurship and innovation ecosystem while connecting investors, corporates and startups.