Magaloop raises six million euros

The Berlin-based start-up connects kiosk owners with suppliers via an app and aims to make processes more efficient and cost-effective. Magaloop has now received six million euros in seed funding.

The kiosk around the corner is perhaps one of the few areas that has not yet been digitized. The start-up Magaloop wants to change this by connecting suppliers and owners of kiosks, petrol stations and bakeries. Stationary retailers can use the app to order the products they need for their shelves from a selected supplier in the city. The Berlin start-up has now received six million euros in seed funding.

The round is led by existing investor Redalpin and includes Atlantic Food Labs, Piton Capital, Market One Capital, Bitburger Ventures and FJ Labs. The money will primarily be invested in further growth and the expansion of the app.

"The new capital brings us closer to our goal of making the many independent retailers fit for the future with our digital solution," says CEO Uwe Hölzer. He and Michael Högemann founded Magaloop in 2018 and the start-up now employs 30 people in Berlin.

Main investor Redalpin was particularly impressed by Magaloop's growth despite the coronavirus pandemic: "With its unique business model, Magaloop not only doubled its trading partners last year despite Covid-19 and the associated lockdowns, but also its transaction volume. In 2020, Magaloop already had over 2,000 merchants in its network, which corresponds to a transaction volume of over 70 million euros," says Sebastian Becker, Investment Manager at Redalpine.