Leading Online Liquidation Market Melltoo Expands Business to the Kingdom of Saudi Arabia (KSA) and Raises a New Round of Funding Co-led by Gobi Partner
Melltoo, an online liquidation marketplace has announced the expansion to KSA as well as the closing of an undisclosed Pre-A round. The round was co-led by multinational venture capital firm Gobi Partners, who have also begun expanding into Gulf Cooperation Council (GCC) countries.
Founded in 2014, Melltoo is an online marketplace for liquidation and used items. The company allows third party sellers to list their items for sale. In addition, the platform enables e-commerce and corporates to liquidate their old retail stock and used company electronics. The company connects buyers and sellers while also handling logistics and order fulfillment.
“At Melltoo, our aim is to help people and companies sell their stuff in the most efficient and the easiest way possible,” said co-founder Morrad Irsane, who established the company with his long-time business partner and wife, Sharene Lee. Speaking on the company’s performance, Sharene said, “Since launching our liquidation service, we’ve grown transactions 300% and are on track to quadruple our GMV by the end of the year. We’ve increased the number of sellers 6x in the past 6 months and have onboarded over 30 ecommerce and corporate clients who liquidate through the platform.”
The company is now expanding their business to KSA, and will begin operating in Riyadh, where they are setting up a warehouse and hiring a local team. They will be using the funds raised from this round for this expansion effort, and will also be looking to greatly expand their current operations in the United Arab Emirates (UAE).
Gobi Partners, the co-lead investor in Melltoo’s latest round, stated their belief in the company’s business model: “We have seen similar startups in China and ASEAN that have achieved success with this strategy,” said Thomas G. Tsao, Chairman and Founding Partner of Gobi. “Furthermore, Melltoo as a TaqwaTech* company is catering their services to an underserved market and are solving the biggest issue most GCC e-commerce companies face on an annual basis. We are looking forward to seeing how their business will take off in the Kingdom.”