KudiGo & Boost Ghana Bags $120k from the Catalyst Fund Inclusive Digital Commerce accelerator to promote SMMEs
Boost Ghana and KudiGo have received $120,000 from the Catalyst Fund Inclusive Digital Commerce accelerator to enable small retailers to grow by easing business administration, digitizing operations, improving access to working capital, and reducing the cost of doing business, while providing suppliers with efficient access to MSE customers on the ground.
Apart from the $120,000 in capital funding, the startups will receive 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.
Read also: Proparco teams up with DEG, signs US$65mn loan to MCB to assist its customers affected by COVID-19
Apply For Funding GetFundedAfrica provides equity capital from $1,000 to $50,000. For larger amounts (Above $50,000) we organize syndicated funding rounds of up to $500,000. Apply Here
“MSEs are the backbone of Ghana’s economy, representing about 80% of the MSME sector and employing over 50% of Ghanaians (MOTI 2019). Within the MSE sector, informal work is predominant and contributes to 90% of employment,” said Jane del Ser, Program Director for the Catalyst Fund Inclusive Digital Commerce Accelerator.
“Following the COVID-19 crisis, micro and small enterprises in particular lack access to a financial safety net, which significantly impacts their livelihoods and ability to do business. As most transactions and records occur offline, these businesses also lack digital financial records that can grant them access to the working capital they need to survive. Both Boost Ghana and KudiGo present digital solutions that have the potential to significantly impact the livelihoods of thousands of informal MSE owners,” del Ser concluded.
The Catalyst Fund Inclusive Digital Commerce accelerator, managed byBFA Global, in partnership with the Mastercard Foundation COVID-19 Recovery and Resilience Program and the Meltwater Entrepreneurial School of Technology (MEST).
Since launching the program in November 2020, Catalyst Fund conducted research on MSEs in urban and peri-urban retail shops around Accra and found that 100% of shop owners have smartphones, and more than half already market their businesses via social media. However, few currently use digital means to purchase inputs, manage their businesses on a day-to-day basis, or fulfill orders; only 20% buy inputs online, and 80% purchase inventory in-person, at markets or at a store. This leads to costly transportation expenses, and it means MSEs cannot guarantee the availability of supplies or price stability enjoyed by larger retailers.
Read also: Fintech Krowdbox opens online payment platform to aid offline payment of SMMEs In South Africa
Boost Ghana is tackling this problem by enabling underserved small businesses in Ghana to order stock digitally at the best wholesale prices and receive efficient, same-day deliveries. For suppliers, they provide direct access to last-mile retail customers at scale, providing critical data and reducing the cost of distribution. KudiGo provides a holistic retail management solution for small business owners, including inventory management, a CRM, mobile money payments, and a digital storefront, enabling businesses to build a digital footprint and access financial services more easily. They also offer their MSE customers last-mile delivery via partners.
Click here to find out more!
In addition to working with Boost and KudiGo, the Catalyst Fund team aims to grow the wider digital commerce ecosystem, by partnering with corporate innovators and investors who can help these companies scale, in an effort to create a more enabling investment and business environment.
Read also: Kemi’s Korner: As A Young Entrepreneur, How Do I Save My Time?
“Digitizing MSEs is critical to growing the informal sector and unlocking their potential to scale up and be at the forefront of Ghana’s economic recovery. Leveraging the collective capacity of local digital commerce companies to lead this effort is definitely a step in the right direction,” said Nathalie Akon Gabala, Mastercard Foundation’s Regional Director for West, Central and Northern Africa.
Read the original article here
