MaxAB, founded in 2018 by Belal El-Megharbel and Mohamed Ben Halim, is a rapidly growing B2B e-commerce platform based in Egypt. It specializes in the wholesale distribution of food and groceries to traditional retailers, often known as “mom-and-pop” stores.
The company’s goal is to optimize the supply chain in the food and grocery sector through innovative technology and logistics solutions.
Business Model
MaxAB utilizes a pull-driven supply chain model, allowing retailers to order products as needed rather than stockpiling. This approach is supported by the following components:
- E-commerce Platform: Retailers access over 3,000 SKUs through a user-friendly app, simplifying the procurement process.
- Logistics and Delivery: MaxAB operates its own fleet and warehouses to ensure efficient delivery and inventory management, providing on-demand services and maintaining supply chain control.
- Embedded Finance Solutions: The platform offers financial services such as credit facilities and payment solutions, using data analytics to assess the financial health of its merchants.
- Data Analytics: MaxAB provides real-time market insights and sales forecasts to suppliers, helping them make informed decisions and optimize their strategies.
Early Growth Strategies
- Capital Raising: MaxAB secured $40 million in Series A funding to expand its operations across Egypt and enter new markets like Morocco. This investment was crucial for scaling its operations and enhancing technology.
- Market Expansion: The company adopted an aggressive expansion strategy, launching in new cities monthly and acquiring local platforms, such as Morocco’s WaystoCap. This approach broadened its market reach and integrated local expertise.
- Technology Investment: MaxAB focused on technology for inventory management and logistics to differentiate itself from competitors. This investment improved operational efficiency and customer service.
- Building a Strong Network: With a network of over 70,000 retailers, MaxAB created a community that benefits from shared resources and insights, increasing customer loyalty and retention.
- Focus on Customer Experience: The company emphasizes transparency, personalized service, and hassle-free transactions, which are crucial for retaining small retailers facing procurement challenges.
Through these strategies, MaxAB has established itself as a leader in the B2B food and grocery sector in the MENA region, aiming to revolutionize the traditional retail supply chain.