China's Crystal Stream backs Egypt e-commerce platform
Chinese VC firm Crystal Stream Capital has doubled down on a Middle East and Africa strategy with participation in a $40 million investment in Egyptian logistics start-up MaxAB.
The Series A round was led by Netherlands-based impact investor RMBV. US-based Flourish Ventures, Rise Capital, and Endeavor Catalyst also participated as did the International Finance Corporation, Dubai-based Beco Capital, and Africa-focused 4DX Ventures.
Crystal Stream has emerged as one of the more aggressive players in a trend that has seen increasing Chinese venture capital investment pour into the Middle East and North Africa (MENA) region, as well a sub-Saharan Africa.
The early-stage investor, founded in 2012 by Mengqiu Wang, formerly a vice president at Baidu, has identified Cairo as one of its primary targets, along with Nairobi and Lagos, the largest city in Africa with a population of 21 million.
Its previous activity in the region includes co-leading a $30 million Series A alongside Hillhouse Capital for Nairobi-based Lori Systems, one of Africa’s largest logistics coordination platforms. That investment also included Endeavor Catalyst.
This followed participation in a seed round for Lagos-based minibus services provider Gona alongside Beijing-based Unity Venture and Shaka Ventures, a Kenyan VC backed entirely by Chinese LPs. Crystal Stream noted at the time that the investment followed the screening of dozens of other candidates and was part of a broader expansion into the region.
MaxAB is a B2B e-commerce marketplace that connects food and grocery retailers to suppliers. The idea is to simplify supply chain communication, and to reduce costs, time and effort. The company, which received a seed round from Crystal Stream last year, will use the latest funding to explore expansion outside of Egypt.
Other Chinese investors targeting this theme include MSA Capital, which joined a $30.5 million round for Saudi Arabian B2B services marketplace Sary earlier this year. MSA’s previous MENA activity includes investments in United Arab Emirates-based financial technology provider Tabby and Egyptian bus-hailing app Swvl, as well as the establishment of a $50 million China-MENA fund with Al Salam Bank-Bahrain.
Meanwhile, Gaorong Capital and Sequoia Capital China have entered the region as part of a $120 million Series B for Nigerian logistics and payments player Opay. That round also included Meituan-Dianping, along with its investment arm Dragonball Capital, as well as Source Code Capital, Redpoint China, and China-focused Bertelsmann Asia Investments.
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