- Sabi, a Nigerian business-to-business (B2B) marketplace, has received N2.52 billion in a bridge funding round
- The firm, which is owned by Any Adalusom and Ademola Adesina, will be looking to expand beyond Nigeria
- Sabi was founded in 2020 the latest funding will be the second in one year after a $2 million seed capital
Sabi a Nigerian B2B company founded by Any Adalusom and Ademola Adesina has received N2.52billion($6 million) from foreign investors to expand its products across Africa with South African and Kenya two key markets.
In a note, to Tech Cabal the founders said it uses technology to help merchants (wholesalers, aggregators, distributors, and manufacturers) build their businesses.
The company services include logistics, ERP tools, data insights, a B2B marketplace, and financial services.
In essence, Sabi acts like a middle man between businesses and their markets.
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How Sabi operates
Unlike other B2B platforms that buy off manufacturers and then distribute, Sabi simply provides access to assets needed across the entire value chain from the demand and supply side on a single platform.
These channels include offline agents, call centers, merchant partners, supplier centers, and mobile app.
Each stakeholder can access tools around inventory management, sales, tracking, digital invoices, and analytics on the platform.
Commenting on the investment Anu Adasolum, CEO of Sabi said:
“We are excited to have closed this bridge round as Sabi continues to grow at an incredible pace. Our merchant users are taking advantage of every part of our platform, and the quality of the B2B partners we have brought onto the market is clear from the ever-increasing transaction volume.”
"We are one year old startup but there are 175,000 merchants who have made transactions worth over $200 million. There us also more than 10,000 agents that serve merchants on Sabi’s network."
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"Sabi makes money by taking a transaction fee when any merchants perform any sale on the marketplace. The company also earns a margin for providing loan services to them."
According to co-founder Ademola Adesina, another round of investment, a Series A, might close in time to drive the company's expansion into both countries.
“Now that Sabi is operational all across Nigeria, we look forward to bringing our solution into new markets with similar informal sector challenges, starting with Kenya and then South Africa. Sabi’s team, platform, and investors are ready to continue scaling Sabi into Africa’s leading B2B marketplace.
Adesina also revealed the startup is also set to boost product offerings by providing manufacturers with visibility and data-backed insights. It also intends to provide direct engagement down the value chain.
"Sabi plans to also roll out a subscription model where agents will pay a monthly fee to access a reseller platform."
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Meanwhile, three young Nigerians recently won nearly half a million dollars from Chinese billionaire, Jack Ma.
Legit.ng reported that the funds were given to startups across Africa that set out to solve major problems within their countries.
Among the 10 finalists listed, Nigeria's Ikenna Nzewi came 2nd as Jack Ma foundation disclosed over 12,000 applications were submitted.