Morroco’s Z.Systems Secures $1 Million To Back Traditional Retailers

At present, z.systems is a rapidly scaling startup dedicated to enhancing the competitiveness of Morocco’s small, independent retailers — locally known as “hanouts.”

Z.systems is on a mission to modernize traditional retail

Morroco-based Z.systems announced that it raised 10.5 MAD, equivalent to $1 million, in a funding round aimed at revolutionizing the nation’s traditional retail industry. The round was lead by MNF ventures, with participation from Witamax, CASHPLUS ventures, and Kalys Ventures. The investment is an evidence of growing investor confidence in Z.systems goal to modernize the fast-moving consumer goods retail in the region.

Z.systems is relatively new to the retail industry as it was founded earlier this year by Meriem Benabad and Samer Choumar. At present, z.systems is a rapidly scaling startup dedicated to enhancing the competitiveness of Morocco’s small, independent retailers — locally known as “hanouts.” These hanouts account for a staggering 85% of the country’s FMCG market. However, they often face challenges in efficiency, connectivity, and access to resources.

Z.systems’ tool for bridging the gap between small retailers, manufacturers, and wholesalers is its super app. This platform provides an opportunity for retailers to source products, participate in brand loyalty programs, and leverage gamified incentives to diversify their inventory. This approach not only boosts the operational efficiency of these retailers but also positions them to capitalize on emerging market trends.

Since its establishment, the startup boasts of adding 15,000 active retailers to its ranks, making 800,000 orders possible through its online platform. While its sights is initially trained on FMCG, Z.systems is working on ambitious projects that involves extending its offerings into other retail verticals such as construction materials, home products, furniture, and electronics. The platform aspires to serve as the digital backbone for over 120,000 hanouts and countless other retailers across Morocco, enabling them to connect with industrial suppliers, wholesalers, and service providers.

Z.systems’ array of services spans through the entire retail value chain, including inventory management, sales, and logistics. Its seamless operational flow is made possible through strategic collaborations with local B2B commerce platforms like Awal and Wafer, alongside logistics specialists such as Agilo and Matrix. These collaborations are calculated to reduce inefficiencies and foster a more interconnected and reliable network for all stakeholders.

A crucial pivot of z.systems’ strategy is its adequate data and analytics capabilities. Through gathering and analyzing vast amounts of market data, the platform provides actionable insights into consumer behavior, market trends, and operational efficiencies. This data-driven approach not enhances strategic decision-making, as well as opens up new revenue streams, particularly through targeted marketing initiatives.

If anything, the recent funding round is a vote of confidence in z.systems’ ability to address critical issues in Morocco’s retail ecosystem. In addition, the platforms ability to modernize traditional retail aligns with broader economic goals, including digital transformation and fostering small business growth.