Qogita, a wholesale marketplace for retailers, has secured €80 million ($86 million) in its Series B funding round. The investment was led by Dawn Capital, a London-based venture capital firm. This new capital injection will be utilized to expand Qogita’s presence across various product categories.
Key Takeaway
Qogita, a wholesale marketplace for retailers, raises $86 million in Series B funding to expand its operations and compete in the European market.
Expanding Market Presence
Qogita is targeting small and medium-sized e-commerce retailers, offering an all-in-one wholesale platform. The company’s approach is similar to that of Faire.com in the US and Ankorstore in France, as well as the well-established Alibaba, which has been a major player in the B2B wholesale commerce market.
Leadership and Vision
The co-founders of Qogita are Yaniv Toledano, previously associated with Goldman Sachs, and Danny Toledano, a former president of Isramco. The company’s CEO, Manolis Manassakis, who previously held a leadership role at Uber, joined as COO in 2021 and was appointed CEO this year. The decision to bring in an experienced CEO reflects the company’s ambitious goals and the need for expertise in scaling marketplaces.
Market Differentiation and Strategy
Qogita aims to differentiate itself by providing an Amazon-like buying process, managing end-to-end processes, including shipping and delivery. Additionally, the company offers a Buy Now, Pay Later (BNPL) platform to assist SMEs facing cash flow challenges.
Challenges and Opportunities
Manassakis acknowledges the challenges in the B2B marketplace due to its crowded nature and the potential impact on margins. However, he believes that there are still opportunities for companies that can refine the marketplace model and offer unique value propositions to buyers and sellers.
Market Potential and Competition
The global health and beauty market, where Qogita primarily operates, is projected to reach a value of $785 billion by 2025. Qogita identifies Faire, Ankorstore, and Alibaba as its closest competitors in the market.
Investor Perspectives
Norman Fiore, general partner at Dawn Capital, emphasized the complexity and opacity of product procurement for small and medium-sized businesses in the e-commerce market. He praised Qogita’s all-in-one platform, addressing the challenges of wholesale procurement.
Luca Bocchio, Partner at Accel, highlighted the opportunity for Qogita to become the digital enabler of the entire value chain in the fragmented and complex B2B wholesale market in Europe.
Market Dynamics
The B2B wholesale market in Europe is witnessing increasing digitization, with the global health and beauty market expected to grow significantly by 2025. Ankorstore, a key competitor, recently introduced a new membership program for independent retailers in Europe, offering various benefits such as waiving minimum checkout amounts and providing a Buy Now, Pay Later offer.
While Ankorstore has secured substantial funding in the past, it has also faced challenges in the current capital-raising environment, leading to job cuts.
