Senegalese investment company M & A Capital’s new bakery chain, O’Merveilles, has raised 40% of the capital it needs to launch its first three outlets. It has just opened two stores in Touba, Central Senegal. A third store is due to open in Dakar.
What is unusual about O’Merveilles is the use of crowdfunding to raise early stage capital – a huge cap in financing for small and medium size businesses. Trendtype believes this model offers significant opportunities in African markets for retailers and QSR chains because it can match local capital with local entrepreneurs, effectively bypassing much of the market uncertainty that drives up risk for traditional investors. It also allows businesses to raise small amounts of capital that are well below the threshold of interest for mainstream investment companies.
We also note the sophistication of O’Merveilles’ proposition in Touba, Senegal’s largest city. The bakery chain manufactures and sells high end baked goods and patisserie. For context, there is little modern grocery retail in Touba and no supermarket chains in the city, although it is a long term expansion target for Auchan.