With the growing digitalization around the world during the two years of the global pandemic outbreak, an increasing number of smaller retailers turned to online channels for sourcing their products. Notably, the convenience of sourcing products through online channels, along with the overall efficiency of the B2B e-commerce market, meant that most retailers have continued with the process even as the impact of the pandemic diminished. This has led to a growing interest in the B2B e-commerce space, including venture capital firms and other players that are seeking to enter the market.
In Egypt, the B2B e-commerce market has recorded strong growth during the pandemic, and the trend is expected to further continue over the next three to four years. As a result, the competitive landscape in the Egyptian B2B e-commerce segment has surged significantly in 2022. For instance,
While there is a huge market for MaxAB to tap into the Egypt and North Africa region, the competition has also increased with the presence of many players. Cartona and Capiter are among the two other well-funded B2B e-commerce platforms that MaxAB is competing with for market share.
Amid the growing competition in the Egyptian B2B e-commerce segment, mergers and acquisition trends have also started to emerge in the country, as new players are looking to capitalize on the potentially high-growth market. For instance,
With the growing competition in the Egyptian B2B e-commerce segment, these firms are also looking to differentiate their services to small and medium-sized retailers in the region. For instance,
In the current macroeconomic environment, where interest rates and inflation are rising, the demand for working capital among small and medium-sized merchants is expected to grow significantly. Consequently, PayNXT360 expects more of these B2B e-commerce players to foray into the B2B fintech category from the short to medium-term perspective. Furthermore, as the competition continues to grow in the Egyptian B2B e-commerce market, PayNXT360 also expects more of these firms to raise funding rounds to further accelerate their growth in the region. This will also open up potential mergers and acquisition deals for larger players who are looking to enter into the high-growth market over the next three to four years.