The pioneering fintech platform Nomanini, which connects financial service providers and fast-moving consumer goods companies with retail SMEs, has launched StockNow, an app that allows micro and small-scale retailers to buy stock digitally.
StockNow will serve as a new supply chain finance solution that links FMCG companies and financial service providers to scale-up serving Africa’s informal retailers.
Nomanini’s CEO, Vahid Monadjem, says, “In response to challenges we saw retailers face during the pandemic and related lockdowns, we established the opportunity to accelerate the development of our digital working capital solutions to provide tools to help retailers keep their shelves stocked with essential goods.”
Stock Retailer Challenges
The expansion of FMCGs into emerging markets is fraught with difficulties. Many informal retailers experience periods when they are unable to pay their suppliers to restock their inventory because of a lack of cash flow.
High operational costs are incurred as a result of stock being returned to the depot unnecessarily and this is what StockNow is out to resolve.
According to a statement released by the company, even though global FMCG value chains reach ten million informal retailers in Africa, there is a lack of access to responsible and affordable finance solutions for these retailers, which makes it difficult for them to keep their shelves stocked, attract customers, and grow their businesses.
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The Fintech company explains that “By digitizing the supply chain, StockNow enables FMCGs to increase operational efficiency by unlocking trade data and gaining visibility into the sales and preferences of informal retailers. Automating settlements and incentivizing e-payments within the value chain also lead to improved efficiencies,”
Nomanini : Idea Behind StockNow
To overcome this, retailers will benefit from responsible working capital. The StockNow app will enable informal retailers to acquire goods using stock advances to keep their shelves stocked with necessary commodities, ensuring company continuity and support for customers in the last mile of the distribution chain.
For Nomanini, the launch of StockNow signifies a significant transition away from enterprise B2B technology solutions and toward a move toward embedded stock advancements in the FMCG value chain.
“COVID really highlighted how important these retailers are to their communities,” explains Nomanini’s CEO, Vahid Monadjem. “And unfortunately, their lack of access to responsible business finance solutions means that they are particularly vulnerable during and after times of crisis.“
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“In response to challenges we saw retailers face during the pandemic and related lockdowns, we established the opportunity to accelerate the development of our digital working capital solutions to provide tools to help retailers keep their shelves stocked with essential goods.” He continued.
StockNow Availability
Retailers operating in the informal sector demand consistency, and working capital solutions such as the StockNow app, which can be downloaded on android devices as well as feature phones, can give better resilience and act as a buffer against shocks. They will also be able to construct a more robust financial track record, as well as trade with more confidence and volume over the course of time.
StockNow is now operational and is being rolled out to thousands of informal retailers in Tanzania. Plans are currently being developed to scale the solution across the Africa continent, from Mozambique to Uganda, and from the Democratic Republic of the Congo to Egypt.
Observations
With the launch of StockNow in Tanzania, Nomanini has formalized its partnership with Nestlé ESAR, a crucial partner, to alleviate some of the issues faced by retailers in Africa’s general market, especially as they recover from the pandemic.
