The digital B2B market in Berlin MagaLoop raised € 9 million in funding for its application-based ordering platform to connect independent retailers directly with suppliers. The A-Series round was led by existing investors Single Capital Market and FoodLabs and saw the participation of Redalpine capital, Bitburger Ventures, Fuse Venture Partners, Creatures of Conviviality Venturesand Hesta Investments.
The company will use the new money to further expand its network of independent wholesalers and retailers and drive additional platform expansions.
Independent retailers are largely un Digitized and disconnected and are struggling with inefficient and outdated ordering processes. Breaking the segment to ensure that stores and independent retailers remain competitive in fast-changing grocery and retail space, MagaLoop is trying to change the scenario.
Founded in 2018 Uwe Holzer and Michael Högemann, the app connects retailers, such as shops, bakeries, gas stations and night grocery stores, with suppliers. This allows customers to order everything from chewing gum to drinks through one tap.
According to the company, the digital tool provides fast and efficient ordering processes with smart features such as a barcode scanner or order history, and thus helps small retailers such as bakeries, kiosks, evening shops , and snack bars, and shops at gas stations. to better manage their resources. FMCG wholesalers and manufacturers will also benefit from the solution by gaining access to a retail network as well as in-depth data on product flows.
Uwe Holzer, co-founder of MagaLoop, said: “With the new round of funding, we can continue to stimulate and concretely shape structural changes in the impulse channel aimed at sustainably strengthening the competitiveness and future viability of small independent retailers.”
Patrick HuberFoodLabs’ general partner, added: “We see a big impetus to further expand MagaLoop’s business, allowing even more independent retailers to digitize and run their businesses more effectively in a highly competitive space.”
From early 2022, the company also offers direct distribution to its independent retailers through service centers in North Rhine-Westphalia and Hamburg. In the future, he plans to deploy more direct distribution centers. The next venue in Frankfurt will open on June 1.