Ghana’s Shopa is transforming informal retail distribution and supply chain
Shopa, a Ghanaian retail digital startup, claims to be “redefining” the informal retail distribution and supply chain by connecting last-mile sellers with suppliers and enabling cash or credit access to stock.
Shopa was founded in August 2020 in response to challenges faced by informal retailers in their restocking process and their inability to obtain credit. Shopa uses digital tools and an integrated delivery network to help informal retailers restock and receive delivery within four hours, without having to leave their stores.
“We discovered that sourcing inventory from suppliers for informal retailers was expensive in terms of additional transportation costs, revenue lost due to shops being too far away to go to the market to restock, and lack of access to microcredit due to being deemed uncreditworthy,” co-founder Michael Hammond told Disrupt Africa.
Shopa attempts to solve these issues by allowing business owners to place orders by SMS, WhatsApp, or the Shopa web app and have goods delivered to their locations. It has aided over 2,000 consumers in completing nearly 14,000 transactions so far, and it is looking to expand.
“At the present, we’re operating in Ghana, with ambitions to extend to other African countries in the future,” Hammond added.
This expansion can be accelerated with the help of cash. MEST provided pre-seed capital to Shopa, and the company has recently received grant funding from Google and Catalyst Fund. Commissions on products sold through the startup’s platform, as well as credit granted to clients through third parties, are how the company makes money. Hammond stated that it is confident in its ability to carve out a market share in an increasingly crowded industry.
“Traditional wholesalers and distributors are potential competitors.” Other companies in Nigeria, Kenya, and Ghana, such as TradeDepot, Alerzo, Omnibiz, Sokowatch, and Boost Technology, are doing similar things,” he stated.
“However, this is a massive industry, and together, we’re pioneering a new distribution model.”
