A next-generation, B2B ecommerce platform with integrated financial services and logistics, Sokowatch was launched in 2016. The startup helps formal and informal retailers more easily access and purchase essential goods and have them delivered to their stores. Through the platform, merchants can source and order products via an app or SMS and arrange free, same-day delivery. They can also access credit and other financial services typically not available to informal businesses via the startup’s financial service provider partners. “We eliminate the middleman and make it quick and easy for merchants to order the stock they need and provide it at low prices. The goal is to make small stores more efficient and more sustainable,” says CEO Daniel Yu.

Sokowatch monetizes by sourcing goods from manufacturing partners in bulk and selling to merchants at market prices, as well as earning fees on credit lines secured through the platform. It is used by more than fifteen thousand merchants across the nine biggest cities in East Africa and has secured $20 million in investments to fund expansion. “We are looking at expanding across the whole of sub-Saharan Africa,” Daniel says.

Sokowatch has secured $20 million in equity from venture capital firms including Quona and 4DX Ventures. The bulk of this came from its $14 million Series A round, raised in January 2020.