YallaHub, the Dubai-based marketplace aggregator and quick delivery service, has successfully raised $6 million in a pre-series A funding round. As a B2B e-commerce startup, YallaHub aims to help brands expand across the GCC region and achieve global omnichannel sales through its "single-window service." The company is built upon the foundation of YallaMarket, a fast grocery delivery service in Dubai, utilizing its advanced technologies and robust infrastructure.
The funding round was co-led by several MENA-focused private investors, entrepreneurs, and syndicates. Notable investors include Fedor Ovchinnikov, founder of Dodo Brands, and Regolith, an ecosystem for financial and investment instruments.
The newly acquired funds will be utilized to enhance the IT platform for order aggregation and expand the network of partner marketplaces. YallaHub plans to accelerate its expansion into Saudi Arabia and Qatar, both of which are rapidly growing markets with flourishing fintech sectors, economic stability, tech-savvy populations, high internet penetration rates, and a strong drive toward digitalization.
YallaHub has already introduced over 80 small, medium, and enterprise brands to the UAE market, including global health food brand Vkusvill. Serving as a single entry point to the GCC market, the marketplace aggregator enables brands to engage in omnichannel sales across multiple platforms simultaneously, including aggregators and marketplaces like Noon, Careem, Amazon, Deliveroo, and NowNow, as well as e-commerce platforms and the merchant's own sales channels powered by YallaWeb and Shopify.
Distinguished as MENA's first B2B2C e-commerce aggregator, YallaHub integrates all market parties into a scalable tech platform. Through a monthly membership subscription, it offers a comprehensive range of products that address scalability challenges faced by e-commerce businesses. YallaHub empowers brands to enhance online sales and provides a one-window solution, offering services such as registration and licensing, export and import assistance, storage and fulfillment, super-fast delivery within 15-90 minutes, marketing tools, e-commerce setup, and payment gateway rental.
Leo Dovbenko and Stas Seleznev, both with extensive backgrounds in food tech, founded YallaHub in 2021. In late 2022, the company made a strategic pivot from B2C to B2B, transforming YallaMarket into YallaHub. This move attracted significant investor interest in the regional market, projected to reach $57 billion by 2026 with a compound annual growth rate (CAGR) of 11%.
Leo Dovbenko, CEO and co-founder of YallaHub, explained the company's transformation: "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."
YallaHub currently employs 120 individuals in Dubai, UAE, and is in the process of hiring an on-ground team in Riyadh. Stas Seleznev, CPO and co-founder of YallaHub, expressed their commitment to utilizing their quick-commerce expertise and technologies to assist brands in entering and scaling within the rapidly growing GCC market. He emphasized that YallaHub provides a unique turnkey solution to enter the UAE market within just two weeks.
The platform charges businesses a monthly subscription fee, an onboarding fee, and a commission for managing brand sales and promotions. YallaHub's ambitious plans for 2023 include expanding into Saudi Arabia and Qatar, attracting over 100 brands and achieving $10 million in annual recurring revenue (ARR). In 2024, the company aims to enter three additional GCC countries: Oman, Kuwait, and Bahrain.
YallaHub's innovative approach to B2B e-commerce in the region has garnered confidence from investors, who believe the company is poised for accelerated growth and capable of unlocking new possibilities for businesses in the GCC and beyond. Den Kerzheman, CEO of Regolith, commented on the extraordinary vision of YallaHub's management team in transforming a high-touch business through the infusion of proprietary technology while expanding product depth for customers. He expressed excitement in being a part of YallaHub's success story.