Pandemic driven eCommerce boom led to emergence of eB2B players, who were quick to pick on the shift in consumer purchase and attract investors, helping scale eB2B market to ~$1.2 Bn in MENAP. eB2B sector is witnessing consolidation as players look to balance focus on scale, profitability and enhance capabilities. It is important that players learn from evolve markets and make the right choices to ensure sustained future growth.
Let’s take a deep dive into the eB2B sector in MENAP.
1. The eB2B sector has received a massive $0.5 Bn of funding over past 2 years…
eB2B players have witnessed exponential growth since pandemic driven by enhanced inventors’ interest in the sector. Bigger players like Sary and MaxAB have already cross $100 Mn funding which is helping them to grow their capabilities and geographical presence. Players with more focus on inventory led model have attracted higher investments.
2. …helping it scale up to a $1.2 Bn market; Poised to more than double by 2025
The growth story of eB2B had its inception in 2020 where many newly born eB2B players were able to attract the investors. Experiencing exponential growth, the eB2B market expanded in 2021, however macro headwinds with intense cash burn pulled down the growth. The eB2B market in MENAP is under penetrated and showing significant growth potential driving sustained future growth.
3. However, consolidation is imminent as players look to balance focus on scale, profitability and enhance capabilities
Consolidation is imminent as witnessed recently where players merged to enhance capabilities as seen in the acquisition of DXBU, which helped them scale business. Global expansion is another area where consolidation helps, as seen with Sary’s acquisition of Mowarrid to enter Egypt market. Similar trends are projected in future where through consolidation bigger players will try to enhance their capabilities or enter new markets.
4. Players must leverage the power of hindsight and learn from evolved markets, making the right strategic choices to win
eB2B players experienced exponential growth driven by ecommerce boom during pandemic. It is important to leverage power of hindsight and learn from evolved markets to ensure sustained future growth. eB2B sector currently stands at a critical juncture, with future growth hinging on the right choices.