4 Ghanaian digital commerce firms receive $120,000 each in funding from Catalyst Fund
Four (4) Ghanaian digital commerce companies namely OZÉ, Shopa, Swoove, and Tendo, have each received $120,000 in funding from the Catalyst Fund Inclusive Digital Commerce Accelerator.
The four companies are the second cohort to receive funding and support from Catalyst Fund after the first cohort – Boost Ghana and KudiGo – received funding from the Accelerator.
Announcing the grant funding to the four firms, Catalyst Fund in a press release on Thursday, October 28, 2021, noted that the companies selected for the second cohort are tackling challenges across the retail sector for Ghana’s informal MSEs.
The Fund asserts that the companies’ 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.
“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.
“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,” added Chirag Shamdasani, Innovation Lead, Ghana, at the Mastercard Foundation.
According to the Fund, 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 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.
Aside the $120,000 grant funding received, the four companies will receive 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.
The Catalyst Fund Inclusive Digital Commerce 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).
About the four selected companies
- 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.
About Catalyst Fund Inclusive Digital Commerce
The Catalyst Fund Inclusive Digital Commerce accelerator, managed by BFA Global, supports innovators building digital commerce solutions in Ghana, with a goal of improving the resilience of informal and underserved micro and small businesses (MSEs) that can benefit from digitization and fintech approaches to enhance their livelihoods. Launched in October 2020, the Catalyst Fund Inclusive Digital Commerce accelerator is supported by the Mastercard Foundation, and run in partnership with MEST.
