YallaHub eyes expansion into wider GCC after securing US$6m in pre-series A funding
Dubai marketplace aggregator, YallaHub has secured US$6 million in a pre-series A funding round. The funds will be used to refine the IT platform for order aggregation and expand the network of partner marketplaces, with plans to accelerate the company's expansion into Saudi Arabia and Qatar in the near future. These are both fast-growing markets with a flourishing fintech sector, economic stability, young and tech-savvy populations, impressive levels of internet penetration up to 99.0 percent and a drive toward digitalization.
MENA's e-commerce sector is projected to reach $57bln by 2026, with the UAE leading as the world's fastest-growing e-commerce market. In addition, according to Statista, the global B2B e-commerce market size is projected to reach $20.9 trillion by 2027 and is expected to grow at a CAGR of 8.5 percent through 2027.
In 2023, the startup is expanding into Saudi Arabia and Qatar, attracting over 100 brands and aims to reach $10m in annual recurring revenue (ARR). In 2024, YallaHub also plans to enter three other GCC countries; Oman, Kuwait and Bahrain.
As a B2B e-commerce startup, YallaHub enables brands to scale up across the GCC region and achieve global omnichannel sales with a “single-window service”. The company is built upon the foundations of YallaMarket, a Dubai-based ultra-fast grocery delivery service, leveraging its robust infrastructure and cutting-edge technologies.
YallaHub has already introduced over 80 small, medium and enterprise brands to the UAE market. The marketplace aggregator provides its customers a single entry point to the GCC market and is equipped to handle omnichannel sales simultaneously, including 8+ aggregators and marketplaces like Noon, Careem, Amazon, Deliveroo, NowNow; e-commerce platforms and the merchant's own sales channels powered by YallaWeb and Shopify.
In late 2022, at a time when many quick-commerce startups shuttered or underwent massive layoffs, the company chose to pivot from B2C to B2B. YallaMarket evolved into YallaHub, attracting major investor interest in the regional market, which is projected to grow at a CAGR of 11 percent to reach $57 billion by 2026.
The new round was co-led by numerous MENA-focused private investors, entrepreneurs and syndicates. Notable investors include Fedor Ovchinnikov, founder of Dodo Brands; Regolith, ecosystem for financial and investment instruments, and others.
Leo Dovbenko, CEO and co-founder of YallaHub, highlighted the evolution of their business model, "After conducting extensive tests with sellers, we confirmed that our new approach was effective. Currently, we offer a premium delivery service through YallaMarket alongside our marketplace aggregator, YallaHub. Our mission is to empower all entrepreneurs to grow quickly in the GCC e-commerce scene, covering the region with reliable and convenient less than 90-minute delivery."