Brands We Love: TradeDepot

Ikenna Nwachukwu

3 years ago

Trade is a vital part of Nigeria’s economy. In 2019, it contributed about 34% of the country’s GDP. It’s consistently been in the top three biggest sectors in Nigeria.

Read more about Brands we love

However, large segments of this sector run inefficiently. There’s often an information gap between manufacturers and distributors on one hand and retailers on the other. As a result, the matches between these two ends don’t always benefit the parties involved. TradeDepot exists to solve this problem. The company bridges the information gaps around pricing, storage, and distribution channels, and enables win-win matches between producers and retailers. The TradeDepot platform makes this data available in real-time, so transaction costs are lower and everyone benefits. Founded in 2016, TradeDepot is the brainchild of three serial entrepreneurs—Onyekachi Izukanne, Michael Upong, and Ruke Awaritefe. Michael and Onyekachi have some experience in software; Ruke’s background is in data science.

The three are leveraging their skills in these areas, as well as their previous experience in the Nigerian startup scene, to build a company that serves an important sector of the country’s economy. There’s been a steady growth of FMCG (Fast-moving Consumer Goods) companies signing up to TradeDepot’s platform. They’re doing this to gain access to tens of thousands of retailers. The retailers on the platform are also seeking moderate product prices and discounts from producers.

Sign up to the Connect Nigeria daily newsletter

TradeDepot operates as a tech-enabled distributor for manufacturers—including some of the world’s biggest companies. They buy these companies’ products and store them; then they sell to retailers who need these products. Manufacturers are provided with an insight into how these trades go on TradeDepot’s digital platform. The company also provides manufacturers with inventory, shipping, and customer services. There’s the option for producers to take on shipping by themselves if this suits them. Businesses on this end are enabled to view their performance against that of their market competitors. Retailers can also view product prices offered by major brands, and order any of those products. These are delivered to a depot that’s closest to them. Demand levels and delivery rates are monitored by manufacturers; the information they get from these processes enables them to review prices and adjust their delivery systems to gain an advantage in the market. Working with financial institutions, TradeDepot provides retailers with the credit they need to purchase goods available within its domain. The opportunities presented by Nigeria’s vast trade sector aren’t lost on investors. That’s why in 2018, TradeDepot attracted a $3 million investment from Partech Partners, a global venture capital firm. And in 2020, they raised another $10 million from investors to expand their operations. The team at TradeDepot says that they’re simplifying the route-to-market for FMCGs in Nigeria, and making it easier for neighbourhood stores to stock up on these products. Featured Image Source: Get Logo Vector

Got a suggestion? Contact us: editor@connectnigeria.com