Dubai marketplace aggregator, YallaMarket, with its quick delivery service YallaHub, has secured $6 million in a pre-series A funding round.
As a B2B eCommerce 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.
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, the ecosystem for financial and investment instruments, and others.
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.
YallaHub has already introduced over 80 small, medium and enterprise brands to the UAE market, including the global health food brand Vkusvill. 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, Noon, Careem, Amazon, Deliveroo, NowNow, eCommerce platforms and the merchant’s own sales channels powered by YallaWeb and Shopify.
YallaHub is MENA’s first B2B2C eCommerce aggregator, integrating all market parties into a single, scalable tech platform. With a monthly membership subscription, it provides an extensive array of products designed to dismantle any scalability hurdles facing eCommerce businesses. YallaHub enables brands to boost online sales and provides a one-window solution offering registration and licensing services, export and import assistance, storage and fulfillment, super-fast delivery within 15-90 minutes, marketing tools, eCommerce setup and payment gateway rental.
The startup was founded in 2021 by Mr. Leo Dovbenko and Mr. Stas Seleznev, both have extensive backgrounds in food tech.
“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 eCommerce single-window solution, YallaHub. 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 eCommerce scene, covering the region with reliable and convenient less than 90-minute delivery.”
In late 2022, the managing team made a strategic move that changed the company’s mission and opened doors to new opportunities. At a time when many quick-commerce startups shuttered or underwent massive layoffs, the company chose to pivot from B2C to B2B. Through the founding team’s commitment and determination, 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.
YallaHub currently has 120 employees in Dubai, UAE and is hiring an on-ground team in Riyadh.
“It seemed only natural to use our quick commerce expertise and technologies to help brands enter and scale in the fast-growing GCC market, all the while providing seamless customer service. This is an utterly new approach in the B2B eCommerce industry, no one offers a turnkey solution to enter the UAE market in just 2 weeks the way we do,” commented Mr. Seleznev, CPO and co-founder of YallaHub.
“We’re confident in YallaHub’s innovative approach to B2B e-commerce in the region. With these newfound resources, YallaHub is poised to accelerate its growth trajectory and unlock new possibilities for businesses operating in the GCC and beyond,”stated Mr. Den Kerzheman, CEO of Regolith.
“Additionally, we identified the management team’s extraordinary vision to transform a high-touch business by seamlessly infusing proprietary tech while increasing product depth for any size customer. We are thrilled to be part of the YallaHub success story,” Mr. Kerzheman said.
The platform charges businesses a monthly subscription fee, an onboarding fee and a commission for managing brand sales and promotions.
In 2023, the startup is expanding into Saudi Arabia and Qatar, attracting over 100 brands and reaching $10 million in annual recurring revenue (ARR). In 2024, YallaHub plans to enter three other GCC countries, Oman, Kuwait and Bahrain.