TradeDepot

About TradeDepot

TradeDepot is a B2B eCommerce platform designed to connect international consumer goods brands with the vast, fragmented network of informal retailers in Africa. The company was founded in 2016 by Michael Ukpabi, Onyekachi Izukanne, and Ruke Awaritefe.

The founders, with their backgrounds in technology and experience within the African business landscape, recognized the inefficiencies in the traditional distribution channels for fast-moving consumer goods (FMCG). They aimed to create a solution that would streamline the supply chain, offering greater visibility and accessibility for both brands and small retailers. Their journey began with the goal of digitizing a market that heavily relied on manual, paper-based processes.

TradeDepot's core business revolves around its mobile and web-based platform, which allows small-scale retailers, such as kiosk owners and mom-and-pop shops, to order inventory directly from manufacturers. This direct-to-retailer model bypasses the multiple layers of distributors and wholesalers that typically inflate costs and create stock-out situations. The platform aggregates demand from thousands of retailers, enabling them to benefit from group buying power and access a wider variety of products at competitive prices.

For its clients, the FMCG companies, TradeDepot provides a direct channel to a hard-to-reach market segment. It offers valuable data and insights into consumer purchasing habits, demand forecasting, and inventory levels at the retail level, which were previously difficult to obtain. The company's revenue model is based on margins from the products sold through its platform. Additionally, TradeDepot has expanded its services to include financial solutions, offering a "Shop-Now-Pay-Later" credit facility to its network of retailers. This buy-now-pay-later (BNPL) service provides a line of credit, helping retailers manage their working capital more effectively and grow their businesses. The company has secured significant funding to fuel its expansion across Nigeria and other African markets, including a $110 million Series B round in 2021.