UAE B2B Tech Startup Grocart Revolutionizes the Retail Supply Chain
Grocart is a smart B2B wholesale marketplace, founded by Hussein Hosni (Co-Founder & CEO) and Nesma Zaghow (Co-Founder & COO) both of whom come from a pharmaceutical background.
Combining their professional skills, they cofounded Grocart in order to support the transformation of the grocery market scene, or in other words ‘one-stop shops that are the backbone of every small and large community, around the globe.
Grocart allows FMCG retailers to source their supplies efficiently, effectively, and seamlessly with a couple of clicks through a smart, tech-savvy web application platform.
To date, the company has successfully delivered more than 10,000 orders, and signed partnership agreements with market-leading suppliers, with over 3000 products on Grocart from more than 200 brands.
The company hopes to expand its smart B2B operations across the MENA region after a successful launch in UAE, in areas such as Saudi Arabia and even Egypt which both have a large number of small shops. For instance, in Saudi Arabia, there are more than 90% of small shops in the retail sector
The “small” grocery store, or in other words the ‘minimart’ is considered the lifeblood of our community, providing us with our day-to-day necessities, and last-minute requirements at a moment’s notice.
With this in mind, when the founders started Grocart, they began by asking one simple question: How can we help these small grocery stores and mini-marts thrive?
In their explorations, they also found that the B2B wholesale market in UAE & MENA is extremely fragmented, with many challenges for suppliers & distributors too, including poor reach, high cost of Logistics & difficulties in credit terms, resulting in slow supply cycles for the small grocery market.
The gap in the market was evident during the Covid-19 pandemic, where the need was greater for small retailers who were very important for the economy, but they suffered from slow supply cycles and higher costs.
Using cutting-edge technology, the platform has streamlined the B2B wholesale market in the UAE for suppliers and distributors, allowing them to allocate their resources minus the challenges of high cost, poor reach, faulty logistic chains, and rigid credit terms.
Now GroCart aiming to reach 20k orders within a few months, and also raising a new investment round to expand in the MENA region.
Hussein Hosni (Co-Founder & CEO Grocart) said: “Grocery stores are found in every community, big or small. In remote areas and busy streets. There is something about them that is so charming and nostalgic.
"When the pandemic hit, they remained open but we noticed some struggled with deliveries or getting items on time.
"That is why we wanted to create a seamless solution to help them thrive and survive with a click of a finger, after all, they are our supply line in times of crisis, in the middle of the night, or just because it’s always close by."
According to a recent analysis report by Frost & Sullivan, on the KSA and UAE F&B market; as of last year, the grocery purchase market size in the UAE accounts for more than $37 billionand the Grocart team is seeking to reach $34 million in sales on their website.
The unique business model is considered one of the first in the local market that has adopted a hybrid model that meets all suppliers' needs.
Grocart has solved the gap in supply chains by providing the right resources to retailers via technology, which connects them with manufacturers and distributors, providing them with fast delivery and access to over 30K products, in addition, offers flexible funding solutions.
The platform differentiates itself by being a one-stop fulfillment center for all suppliers and distributors, as it provides storage, fulfillment, and logistics support - decreasing operational costs by more than 30 % and offering 100 % coverage with 10X faster supply.
Grocart technology can also manage inventory with suppliers, enabling them to reach thousands of customers and sell their wide range of products.