Ethiopia’s JEMLA, a B2B e-commerce wholesale platform that is helping informal retailers access a wide variety of fast-moving consumer goods (FMCGs) products, has onboarded over 12,000 retailers since its launch in late-2021.
JEMLA connects dukas, kiosks or souqs with FMCGs, providing them with a dependable and cost-effective supply chain and distribution network customised to their requirements.
“We provide these retailers with access to a wide range of essential products, enabling them to maintain adequate stock levels and operate more efficiently,” said Estephanos Zewdie, co-founder and CEO of JEMLA.
In addition, the platform provides access to working capital and a range of services to help retailers expand their businesses, including data insights through the use of technology.
“Additionally, we plan to leverage the transaction data of these retailers to facilitate access to Buy Now, Pay Later (BNPL) services and financial products from banks and financial institutions, thus improving their cash flow and financial stability,” said Zewdie.
Disrupt Africa first reported on the company in May 2023, but since then it has ramped up, onboarding over 12,000 retailers onto its platform and successfully serving more than 2,500. Zewdie said JEMLA was born out of a desire to bridge the gap between small-scale retailers and the formal supply chain.
“These small-scale businesses are crucial to the nation’s consumer landscape, playing a significant role in product distribution. However, due to a lack of infrastructure, data availability, and transparency within the supply chain, “souqs” have been largely neglected or underserved by traditional market players and distributors,” he said.
While global players like MaxAB, Wasoko, and TradeDepot are addressing similar challenges in other markets, the Ethiopian context presents unique hurdles due to infrastructure and e-commerce development disparities.
“Although some local competitors exist in the B2B space, the traditional wholesale market and informal supply chains still dominate the landscape,” said Zewdie.
JEMLA aims to address these issues by creating a comprehensive platform that connects retailers with suppliers and financial institutions.
“Our goal is to empower “souqs” by improving their business operations and financial stability, ultimately contributing to the growth and development of the Ethiopian retail sector,” he said.
JEMLA is primarily funded through a combination of seed capital invested by the founding team and external angel investors. It secured a small angel round during its inception to propel initial growth, and in March of last year received grant capital from the Jobtech Alliance programme, a joint initiative by BFA Global and Mercy Corps.
“To further accelerate our expansion, we have recently secured a loan from a partner bank,” said Zewdie.
Uptake of JEMLA’s platform has been “encouraging”, he said, given the relatively nascent e-commerce landscape in Ethiopia.
“Thousands of retailers have joined our platform, demonstrating a strong appetite for the solutions we offer. Combining digital tools with on-the-ground support, has proven to be highly effective in building trust and driving adoption. We are particularly pleased to see a growing number of customers using our app and placing orders, indicating a shift in behavior towards digital platforms,” said Zewdie.
Currently, JEMLA operates primarily in Addis Ababa.
“We have explored expansion into neighbouring cities where similar market dynamics exist,” Zewdie said. “Our goal is to replicate our success in Addis Ababa by addressing the needs of small-scale retailers in other emerging markets and neighbouring cities.”
JEMLA generates revenue through transaction fees, margins on product sales, and service fees for BNPL transactions facilitated through its platform.
“While we are still in the growth phase, our revenues have been steadily increasing as more retailers join the platform. We have already surpassed revenues from 2023, and are growing 8x in comparison to the 12 months. Profitability is on the horizon as we scale operations and optimise our processes,” said Zewdie.
