SENEGAL – ProXalys, a Senegalese B2B e-commerce firm aimed at informal sector sellers, has received $150,000 in pre-seed funding to expand its operation in Senegalese cities.
The funding round was led by Haskè Ventures, a venture builder based in Dakar and focused on transforming the startup landscape.
ProXalys intends to expand its reach in Dakar and in the major cities of Senegal, with the ambition to eventually support the entire West African region, a goal with has been furthered by a US$150,000 pre-seed investment.
The startup will use the capital in the reinforcement of its technology, and in the development of its physical infrastructure, which will include the consolidation of its vehicle fleet and warehouses.
ProXalys has three tools for managing and capturing daily financial flows in real time – an order-taking application for informal distributors; an IT system for administrative management; and a supply chain logistics management system.
It also provides a procurement service for everyday products with instalment payments and free delivery within 24 hours..
By innovating on the current operational procedures, the startup hope to improve and modernize the distribution channels.
“Our goal is to strengthen small businesses so that they can endure the continent’s massive multinational corporations’ digital and distribution revolutions,” said Thierno Sakho, start-up’s founder and CEO.
ProXalys has acquired the trust of various merchants in the Dakar region with over 100 recurrent customers.
The startup serves variety of customers including hotels, restaurants, grocery stores, wholesalers, and semi-wholesalers.
“We believe that technology can aid in the modernization of Africa’s informal infrastructure. Its digitalization is a major issue that must be addressed not just via improved operating processes, but also through increased financial literacy and education among its stakeholders,” said Abdourahmane Diop, Managing Director of Haskè Ventures.
Over the last ten years, the advent in Senegal of large distribution chains such as Auchan or Carrefour has disturbed the informal sector, which nevertheless accounts for 90% of the Senegalese economy.
Senegal’s agricultural value chains are likewise being revived by the corporation.
Due to a lack of outlets, Senegal loses US$150 million (100 billion CFA francs) in agricultural losses each year.
The core proposition of ProXalys is to digitize the entire value chain in order to reinvent old supply techniques for enterprises in this huge domain.
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