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ImpactAlpha, July 27 – Informal trade is an important center of economic activity on the African continent. Current and concrete data are hard to come by, but an estimate in Kenya compares informal economic activity to 34% of GDP and 77% of employment.
Sokowatch, a Nairobi-based startup, raised $ 2 million for its platform that unites informal retail sellers in Africa with leading consumer goods companies such as Unilever and Proctor and Gamble, as well as the world's largest retailer. to local businesses. Its goal is to reduce the cost of goods for retailers and their customers by eliminating costly middlemen and managing payments and deliveries. The company says it reduces costs for buyers by 20%.
Sokowatch managed over 100,000 orders for several thousand customers, TechCrunch reports. It currently operates in Kenya and Tanzania and plans to expand to other markets in East Africa.
Sokowatch's seed tour was supported by 4DX Ventures, Global Village, Lynett Capital, Golden Palm Investments and Outlierz Ventures. Other companies like Twiga Foods, also in Kenya, and Doodhwala in India have built businesses around driving efficiency in informal markets. Twiga, which connects informal traders to farmers, was reportedly raising new equity, following a $ 10.3 million turn . last year.
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