Berlin-based digital B2B marketplace MagaLoop has raised €9 million in funding for its app-based ordering platform to connect independent retailers directly with suppliers. The Series A round was led by existing investors Market One Capital and FoodLabs and saw the participation of Redalpine Capital, Bitburger Ventures, Fuse Venture Partners, Créateurs de Convivialité Ventures, and Hesta Investments.
The company will use the new cash to further expand its network of independent wholesalers and retailers and drive additional platform expansions.
Independent retailers are largely undigitised and disconnected and struggle with inefficient and outdated ordering processes. Disrupting the segment to ensure convenience stores and independent retailers remain competitive in the fast-changing grocery and retail space, MagaLoop is attempting to change the scenario.
Founded in 2018 by Uwe Hölzer and Michael Högemann, the app connects retailers such as convenience stores, bakeries, gas station stores, and late-night grocery stores to suppliers. It allows customers to order everything from chewing gums to drinks through one tap.
According to the company, the digital tool ensures fast and efficient ordering processes via smart features such as the barcode scanner or order history, and thus helps small retailers such as bakeries, kiosks, late-night stores, and snack bars, and gas station stores to better manage their resources. Wholesalers and FMCG manufacturers also benefit from the solution by gaining access to the retailer network as well as in-depth data on the flow of goods.
Uwe Hölzer, co-founder, MagaLoop said: “With the new round of financing, we can continue to drive and specifically shape the structural change in the impulse channel aiming for sustainably strengthening the competitiveness and future viability of the small, independent retailers.”
Patrick Huber, general partner, FoodLabs added: “We see great momentum for further expansion of MagaLoop’s business, enabling even more independent retailers to digitise and run their business more efficiently in a highly competitive space.”
Since the beginning of 2022, the company has also been offering direct distribution to its independent retailers via service hubs in North Rhine-Westphalia and Hamburg. Going forward, it is planning to roll out more direct distribution hubs. The next location in Frankfurt will open on June 1.