Libya-Based Mataa Closes Seed Round From Angel Investors

Mataa, a Libya-based e-commerce startup, has secured its first seed funding round, supported by a network of angel investors in the country  

Founded by Ibrahim Shuwehdi in 2022, Mataa is a shopping app adopting a marketplace model, where it empowers Libyan merchants to access the country’s over six million internet users. The platform also caters to Facebook-based sellers by offering product integration, helping to increase conversion rates and lower reliance on paid ads. 

In an interview with Inc. Arabia, Shuwehdi noted how his startup has managed to come a long way in spite of its limited resources, which he believes was key in inspiring investor confidence. “The funds will help with building our fulfillment center and invest in technology so we can turn into a real marketplace," Shuwehdi added. "Since we were [previously] working with no resources, this will be transformative."  

The funding will also go toward strengthening Mataa’s operations, focusing on first- and last-mile logistics, expanding its warehouse capacity, and broadening its supplier network and product offerings. According to Shuwehdi, Mataa's next phase of growth will see the company enhance its infrastructure and move toward becoming a fully-fledged marketplace.  

Reflecting on Mataa’s journey to date, Shuwehdi noted that the early days were particularly challenging due to the infancy of Libya’s e-commerce ecosystem. “Mataa’s journey has been hard from the beginning,” he admitted. “The ecosystem is very new; there is only one successful startup. However, this problem is actually what inspired us to start, because from such disadvantages come great opportunities. The plan is to dominate the Libyan ecommerce market, [and] then expand into the region.” 

On the operational side, Shuwehdi explained that Mataa has taken a fully in-house approach to logistics to overcome infrastructure gaps. “Operational challenges [are] mostly solved by us,” he said. “We have our own first mile and last mile department and team, and we handle logistics 100 percent by ourselves. Actually, in all verticals, we handle it by ourselves [rather than] rely on third-party vendors. [We also] enable sellers to sell on our platforms, and we handle everything—stock management, data entry, collection, and delivery—and bring them their money in cash to their location.”

Looking ahead, Mataa is positioning itself to eventually play a regional role, but with a near-term focus on consolidating its presence at home. Shuwehdi stressed that Libya’s strategic geographic position puts it at the center of a US$830 billion North African market of 275 million people. He noted that Libya holds a unique demographic and cultural position—bridging the MENA and parts of Sub-Saharan Africa more closely than many other Arab nations.

This, he believes, gives Mataa a strategic edge for future regional expansion. However, he emphasized that the immediate focus remains on solidifying Mataa’s presence in the Libyan market, as broader expansion would require the support of a larger strategic partner. When it comes to advice for entrepreneurs eyeing frontier markets like Libya, Shuwehdi emphasized the importance of having local insights. “The market is extremely new and underserved, [it has a small] population with high purchasing power, and you can take the market fast if you nail the main things right,” he said. 

Shuwehdi also acknowledged that operating in the Libyan market will come with a lot of challenges, but local entrepreneurs can have the upper hand in such a milieu. "The challenges will be high, as in any under-developed economy," he said. "[As such], it is more suitable for Libyan people, since they know how to overcome local challenges. So, anyone willing to enter the market should have a local partner—the opportunity is certainly big since it lacks global players."

Pictured in the lead image is the Mataa team. Image courtesy Mataa.