The funds will be used to improve the IT platform and expand the network of partner marketplaces in the GCC region.
YallaHub, a marketplace aggregator based in Dubai, has secured $6 million in a pre-series A funding round for its B2B e-commerce startup. YallaHub facilitates quick deliveries and enables brands to expand across the GCC region, achieving global omnichannel sales through a convenient ‘single-window service’. The platform builds upon the foundation of YallaMarket, a Dubai-based ultra-fast grocery delivery service, leveraging its advanced technology and infrastructure.
The funding round was co-led by various MENA-focused private investors, and entrepreneurs, including investors Fedor Ovchinnikov, founder of Dodo Brands, and Regolith, a financial and investment instruments ecosystem.
The newly acquired funds will be used to improve the IT platform for order aggregation and expand the network of partner marketplaces, with a focus on entering the fast-growing markets of Saudi Arabia and Qatar, both known for their flourishing fintech sectors, economic stability, tech-savvy populations, high internet penetration rates and a drive towards digitalization.
“We’re confident in YallaHub's innovative approach to B2B e-commerce in the region,” Den Kerzheman, CEO of Regolith tells StartupScene. “With these newfound resources, YallaHub is poised to accelerate its growth trajectory and unlock new possibilities for businesses operating in the GCC and beyond.”
YallaHub has already introduced more than 80 small, medium, and enterprise brands to the UAE market, including global health food brand Vkusvill. The marketplace aggregator provides brands with a single entry point to the GCC market and enables simultaneous omnichannel sales through various platforms and marketplaces.
Founded in 2021 by Leo Dovbenko and Stas Seleznev, YallaHub made a strategic pivot from B2C to B2B in late 2022, attracting significant investor interest. The regional market is projected to grow at a CAGR of 11% and reach $57 billion by 2026, positioning YallaHub for further expansion and success. “Initially focused on our B2C business, YallaMarket, we received requests from 500 companies to help them enter the GCC region. Recognizing the untapped potential, we created the B2B2C e-commerce single-window solution, YallaHub,” Leo Dovbenko, CEO and co-founder of YallaHub, tells StartupScene.
YallaHub distinguishes itself as MENA's first B2B2C e-commerce aggregator, integrating all market participants into a scalable tech platform. With a monthly membership subscription, it offers a wide range of products to address scalability hurdles faced by e-commerce businesses, including registration and licensing services, export and import assistance, storage and fulfillment, super-fast delivery, marketing tools, e-commerce setup, and payment gateway rental.
“This is an utterly new approach in the B2B e-commerce industry,” adds Stas Seleznev, CPO and co-founder of YallaHub. “No one offers a turnkey solution to enter the UAE market in just two weeks the way we do.” The platform adopts a business model that includes a monthly subscription fee, an onboarding fee, and a commission for handling brand sales and promotions. By 2023, the startup will extend its services to Saudi Arabia and Qatar, attracting more than 100 brands and generating $10 million in annual recurring revenue (ARR). By 2024, YallaHub intends to expand to three other GCC countries: Oman, Kuwait, and Bahrain.
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