SANAD invests USD 2 million in POSRocket to advance digital solutions for small businesses in MENA
Equity investment to help fintech innovator scale point-of-sale platform across Jordan, Egypt, and Kuwait
Luxembourg, August 4, 2021 – The SANAD Fund for MSME (SANAD) has provided an equity investment of USD 2 million to POSRocket, an innovative software company serving small and medium enterprises in the Middle East and North Africa (MENA). The investment is part of a pre-Series B round totaling USD 5.1 million that will be used to expand POSRocket’s capacity across the region, especially in Jordan, Egypt, and Kuwait. The round was co-led by SANAD and Algebra Ventures (Egypt) and saw the participation of several other notable investors.
POSRocket serves local enterprises by offering a digital point-of-sale platform to the retail, service, and food & beverage sectors. Compared with on-premise systems for running a business, the lean, cloud-based solution saves entrepreneurs costly investment in hardware and maintenance, while providing them with access to integrated services like payment solutions and financing options. The company has seen significant growth since 2017, when its founders participated in the “Fincluders Challenge”: an acceleration program for early-stage entrepreneurs organized and sponsored by the SANAD Technical Assistance Facility. Today, POSRocket serves over 1200 customers through a staff of 64 employees.
SANAD Board Chairperson Dr. Daniela Beckmann said: “As a fund dedicated to promoting the success of micro, small, and medium enterprises, SANAD has always valued the power of new technologies to open up access to crucial services for entrepreneurs. The Fincluders Challenge was borne of this fintech strategy, and it is rewarding to see it pay off in the form of companies like POSRocket. With its commitment to boosting the success of local businesses in the MENA region, POSRocket is a solid match in helping SANAD achieve its impact goals, underscoring the SANAD Equity Sub-Fund II’s focus on innovation.”
Zeid Husban, Chief Executive Astronaut at POSRocket, said: “We locked in thousands of merchants with an aggregate transaction value of over USD 2 billion. We managed to maintain a small headcount with a prime focus on quality, with operational and capital efficiency. We grew fast with a unique customer experience and healthy unit economics. These have been key to our success since our series A.”
Further investors in the pre-Series B round include anchor investor Algebra Ventures, a leading Egyptian venture capital fund backed by IFC and EBRD.
The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa and selected countries of sub-Saharan Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D.
An impact investment fund advised by Finance in Motion, SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital.
For more information on the SANAD Fund for MSME, please visit: www.sanad.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
POSRocket is a cloud-based point-of-sale platform empowering merchants to grow their businesses. Headquartered in Jordan and founded in 2016, POSRocket has expanded to form operations in Egypt and Kuwait and has grown its customer base across the MENA region. With a prime focus on the F&B quick service industry, POSRocket continues to innovate and disrupt the region’s retail-tech ecosystem.
For more information, please visit: www.posrocket.com
Media contact – SANAD
Senior Officer, Marketing & Communications
Phone: +49 (0)69 271 035-470
Media contact – POSRocket
Mias Al Musleh