Ivorian fintech startup, Waribei, has raised €750,000 ($820,462) in pre-seed funding. This financial injection is targeted at transforming the way small traders across the continent access inventory financing, potentially unleashing and facilitating a wave of growth in a sector that has long struggled with limited capital.

Founded in 2023 by Ladislas Pham and Frédéric Fameni, Waribei has created an innovative platform that bridges the gap between banks, wholesalers, and retailers. By formalizing access to working capital, the startup is tackling one of the most persistent challenges facing small businesses in Africa: maintaining consistent stock levels.

“At Waribei, we want to ensure that merchants can grow their businesses without worrying about maintaining stock levels or struggling to get loans,” co-founder, Ladislas Pham, says.

The funding round, led by Mstudio (€500,000) and Saviu Ventures (€250,000), will fuel Waribei’s mission to empower local merchants, with a particular focus on women entrepreneurs who form a significant portion of Africa’s informal sector.

Read also: Kenya launches AI hub to revolutionize african public services

Waribei’s approach goes beyond mere financial transactions. The team spends time in local markets, listening to traders and understanding their daily challenges. This grassroots insight allows them to craft solutions that truly resonate with their users’ needs.

As Waribei prepares to roll out its services more widely, the impact could be transformative. By providing fast, flexible access to inventory financing, the startup isn’t just helping individual traders – it’s potentially catalyzing growth across entire communities.

In a continent where the informal sector plays a crucial economic role, Waribei’s innovative approach could mark the beginning of a new era in African commerce.