Saudi Arabia-based B2B eCommerce marketplace Sary has raised $30.5 million in a Series B round led by VentureSouq (VSQ) with participation from new investors US-based Rocketship.vc and STV alongside current shareholders Ra’ed Ventures, MSA Capital, and Derayah.
Founded in 2018, Sary connects wholesalers of consumer goods directly to small and medium-sized retailers. The Sary application has served more than 30,000 verified retail businesses in Riyadh, Jeddah, and Dammam.
This new round of funding will allow Sary to expand its geographical footprint, expand its product and service offerings, and enter new markets. It is also planning to integrate third-party financial services onto its platform, offering credit to buyers.
“COVID-19 was a catalyst for digital transformation, and Sary was strongly positioned to provide the Supply Chain 2.0 that gives wholesalers, manufacturers, and retailers instant accessibility and better visibility to buy and sell goods via a single platform. Our focus has been on the FMCG categories, but we believe it is just a stepping stone to reinvent the supply chain of the Saudi retail market that’s worth $165 billion.”
Mr. Suneel Gokhale, Co-Founder, and General Partner at VSQ said, “Core to VentureSouq’s overall FinTech thesis is the emerging trend of embedded financial services. In Sary’s case, we see this move into credit as directly contributing to top-line growth, diversifying revenue streams, and improving unit economics for a strong, proven vertical-specific technology company. We’ve seen similar business models win in other emerging markets, and we believe that the MENA market as a whole represents a similarly interesting opportunity.”
“Sary is a great example of how tech startups in the Kingdom are leading innovation, creating more jobs for Saudis and contributing to the GDP growth, and has proven to be a critical solution, particularly during these times. Most importantly, we believe this team along with its stakeholder base have the capabilities, resources, and sufficient moat in place to be in a unique position to scale this business across the region,” commented Mr. Maan Eshgi General Partner at VSQ.