[Transcript] #66: TradeDepot - How the B2B retail platform is improving the supply chain for informal SME retailers and consumer goods producers across Nigeria and Africa
Transcript for podcast originally recorded on July 2023
😉 In July 2023, we explored the story of TradeDepot, the African digital platform connecting consumer goods brands to retailers. Founded in 2016, the company offers an end-to-end distribution service, including inventory management, payment processing, and delivery logistics, primarily targeting small and informal retailers. TradeDepot enables these retailers to access a wide range of products at competitive prices while allowing brands to expand their reach into underserved markets.
The platform leverages data and technology to optimize supply chains, improve efficiency, and drive growth for its users. TradeDepot has raised a shit-ton of money ($110M+) to scale its operations across the continent, aiming to transform retail distribution in Africa. I wish them well!
Companies discussed: TradeDepot, Twiga Foods, Wasoko (Sokowatch), Omnibiz, Alerzo, Marketforce, Sabi, Multipro, FMCG Distributions Limited & Kellogg
Business concepts discussed: Informal retail penetration, SMB retail OS, B2B Operating systems, Informal markets, B2B retail, Buy Now Pay Later, Trade Finance & last-mile distribution
Olumide Ogunsanwo
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Transcript starts here
[00:00:00] Olumide Ogunsanwo: Today we're going to talk about Trade Depot. We'll explore this story across the following areas: One, we'll start with some context about Africa's and Nigeria's informal retail sector. Two, we'll talk about Trade Depot's early history. Three, its product optimization strategy. Fourth, its competitive position, potential exit option. And then fifth, we'll end with our views on its overall outlook. This episode was recorded on June 25th, 2023.
Trade Depot. Let's do it man. How are you doing? I'm ready. It turns out there are many trade depots in this world, so even finding the right ones to do the research for is fascinating.
[00:00:34] Bankole Makanju: Yeah, I mean, they're like 15 fintechs out of startups called Kudi
[00:00:36] Olumide Ogunsanwo: Reminds me of “Telkom”, we did a bunch of telcos. There was TelKom Kenya, TelKom South Africa. TelKom with a “k”. aslso sometimes with a “c”.
[00:00:45] Bankole Makanju: Now, it's a crazy idea, but maybe all the Telkom companies called themselves Telecom companies.
[00:00:52] Olumide Ogunsanwo: It's a simple naming convention. What is Trade Depot? It is a B2B e-commerce platform that provides FMCG inventory and embedded finances, small mom and pop retailers by connecting them to suppliers and manufacturers.
[00:01:06] Bankole Makanju: It delivers an innovative route to market for leading consumer goods producers in Africa by using its own warehouses of and fleets of drivers to distribute products to its network of micro retailers across Nigeria and Ghana.
[00:01:21] Olumide Ogunsanwo: I like micro retailers, SMB retailers, small mom and pop shops, and a bunch of different names. Makes sense. If that sounds familiar. It's because they're very similar to Sokowatch, AKA Soko in episode 65. Yeah, they do sort of something similar but in a different country
[00:01:38] Bankole Makanju: And they have raised a lot of money.