WafR, an application that allows retail brands to broadcast smart promotions to grocers to increase their market share on the traditional channel, announced today that it has raised $120k from First Circle Capital. With this new investment, WafR is now valued at $10.120 million.
A new investment: a sign of great confidence
First Circle Capital, a venture capital fund that invests in the next generation of Fintech in Africa, had already injected capital into WafR in a previous round of funding last June.
Co-Founder and Managing partner of First Circle Capital who invested in this seed extension, Selma Ribica says “At First Circle we invest in founders driving digitization and financial inclusion for the African context, and Wafr in Morocco is a leapfrogging a solution for the retail sector. Morocco is the 6th largest economy in Africa, with the informal economy accounting for 30% of total GDP. The retail sector, in which Wafr is operating, is dominated by semi-formal players and cash payments. It is estimated that only 20% of food sales currently take place in formal retail outlets. The Moroccan retail sector is estimated to account for $13b per annum, so focusing on the informal segment of this exposes a business to a market value of ~$10b per annum.
Selma adds, “Wafr is the first-mover in launching the unique B2B2C model to digitize Manufacturer-retailer-consumer relationships in the small retail segment. Wafr enables brands to identify customers and increase loyalty for FMCG brands through unique loyalty cash-backs, finding a way to make the incentive structure work for all the stakeholders: FMCGs, small merchants and customers. Having witnessed the superior execution of this complex model in the market, triple digit MoM growth in revenues and the razor-sharp focus of the founding team, we decided to double down our investment into Wafr. We look forward to their scaling in Morocco and the expansion in the rest of Francophone Africa.”
One objective: to support retailers
This investment will enable WafR to expand its network of grocers and reach 50,000 active partner grocers within six months.
“This new round of financing reflects the ambition of the entire WafR team, which is united around a single objective: to provide the best possible support to retailers and FMCG brands,” concluded Ismail Bargach, co-founder of WafR.
