Yebo Fresh, a South African e-commerce startup has raised a $4.5 million Pre-Series A equity funding round to grow into new product categories and market segments, and expand its systems and warehousing infrastructure.
The fund raised will also see to the exploration of partnership opportunities with strategic players in the market.
The round was led by Enza capital and reinvestment by the startup’s largest investor, E4E Africa.
Speaking on the funding, John Lazar, general partner at Enza Capital said, “We are thrilled to back the exceptional Yebo Fresh team. They are fundamentally changing the way essential goods are provided to the township market, an underserved but vibrant and growing segment of the South African economy.”
Jessica Boonstra, CEO of Yebo Fresh added, “This funding will allow us to grow into new product categories and market segments, expand our systems and warehousing infrastructure, and explore further partnership opportunities with strategic players in the market. It will also assist us in gathering even more data insights, further strengthening our unique position in this massive market segment”.
Yebo Fresh makes use of a team of field sales agents and WhatsApp to take orders leading to a streamlined purchasing process. The company delivers within 24 hours using a dark store-based fulfilment model, which cuts the cost and stress of shipping to wholesalers.
The purchase of groceries and other essentials for independent business owners is facilitated by the company.
Moreso, Yebo Fresh insists on being the only startup intentional about the township market. It boasts of its success in improving the network of spaza shops, prepared food outlets and other offering investors, township businesses, suppliers and partners. It is considered the multi-billion South African township market.
Thus, the expansion and further development of the physical and infrastructure system of Yebo Fresh will be aided by this new investment.