According to Bloomberg, Retailo, a Riyadh-based e-commerce platform, has raised $36 million in Series A funding with the goal of expanding and digitizing operations by supporting mom-and-pop retailers in Pakistan, the United Arab Emirates, and Saudi Arabia.
Graphene Ventures, an early-stage investor in Snap Inc. and Lyft Inc., led the investment, which also included 500 Global, Agility Ventures, Aujan Group, Tech Invest Com, and Mentor’s Fund, all of whom have a retail experience.
The funds were provided by Nahda Fund, one of the first Middle Eastern venture debt funds backed by Hong Kong-based IMM Investment Global. Returning backers in the round included Shorooq Partners, Abercross Holdings, Arzan Venture Capital, and AgFunder Inc.
Retailo’s funding round is one of the top 10 largest seeds in the region in the last 12 months, according to statistics. To fund the project, it raised $29 million in cash and $7 million in debt.
Speaking at the occasion, Retailo’s CEO, Talha Ansari, said, “We are building something, which is much more scalable, faster.” Retailo is also offering credit lines and flexible payment options via buy-now-pay-later services, which will be bolstered by debt capital raised in the Series A Round, according to him.
Using its regional footprint, the e-commerce platform recently began providing its merchants with a cross-border distribution network across its market. According to Ansari, the funds will help Retailo enter the next phase of its expansion in other sectors.
In recent years, a slew of businesses have sprung up to serve the region’s retail establishments, which are notorious for employing manual cash registers and handwritten records. The Middle East, North Africa, and Pakistan, according to Retailo, have a $500 billion market with more than 10 million small businesses.
Retailo seeks to digitize these shops by giving them with a one-stop portal where they can order all of their things at improved margins, rather than making tens of thousands of calls and trips to local players. This strategy has become more appealing as global commodity prices have risen.
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