Q-commerce startup YallaMarket raises $2.2M Bridge
UAE's Q-commerce pioneer YallaMarket raises $2.2M in a Bridge round to expand across the UAE and further solidify its position as the go-to on-demand grocery delivery service in the UAE
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Dubai-based 15-min grocery delivery service YallaMarket raises $2.2M in its bridge round which recorded participation of Doha Tech Angels, Flyer One Ventures, and AngelsDeck. The bridge round is coming after the closing of the first $2.3M pre-seed round by Wamda and Dubai Angel Investors in November 2021. With this new funding, YallaMarket financing has passed the $5 million mark in less than three months.
YallaMarket delivers groceries and other goods of daily demand to the doorstep for free in 15 minutes. The service operates through dark stores located in JLT, Business Bay, Dubai Marina, and JVC areas of Dubai. The client receives an order in just 15 minutes from the nearest dark store due to a hyperlocal delivery area concept and extremely high picking speed. A special layout of goods combined with the dark store’s inaccessibility for the customers allows the pickers to collect the order in just 3 minutes after the purchase.
With 3 Mega Deals closed by Turkey-based delivery network Getir and the highest funding round in Pakistan to date closed by delivery startup Airlift, the Q-commerce delivery sector has set for startup success and surely captured investor attention in 2021. As recorded in our State of Startup Funding- 2022 Emerging Venture Markets Report, available for download, these major rounds drove the 550% YoY growth in VC funding over 2021, to make T&L the second most-funded industry across EVMs. The rise of Q-commerce and hyperlocalized offerings has become a global focus for T&L startups as market expectations for on-demand delivery solutions became higher on one hand, and Tech & facility management innovations became more intricate on the other. Q-commerce ventures design a mix of well-placed dark stores or fulfillment centers and integrate fleet management technologies to dispatch products in short delivery windows ranging from 30 minutes in the case of Pakistan-based Airlift to 10 minutes in many other cases like Pakistan-based Krave Mart or Egypt-based Rabbit and Breadfast.
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Since the first funding round YallaMarket has increased revenue and the number of daily orders fourfold — on average the YallaMarket client makes 1.5 orders per week. The startup also reached 2.5x growth in app installs compared to November. The delivery area was expanded by new dark stores in Dubai Marina and DSO areas. “The developments of the last two months proved that entering the UAE market was the right thing to do. Daily orders growth validates that MENA consumers need instant grocery delivery to save their time. The interest from the established international companies also confirms that the region's q-commerce market will be driven by the grocery segment”, says Leo Dovbenko, YallaMarket СEO and Co-Founder.
According to the recent Redseer research, the MENA Q-commerce market is expected to grow by 24% to reach $20 billion by 2024. The region is a global leader in quick commerce, contributing 20% to the MENA's digital economy. The food delivery share, which accounted for 83% in 2021, is going to drop to 55% by 2030, while groceries are expected to have a market share of 14%, 21%, and 31% in 2021, 2024, and 2030 respectively (starting from a tiny 2% in 2018), Redseer said. “The UAE is actively implementing technology in all areas of life, so this is a promising market for projects that AngelsDeck is focused on. Already now we can say that MENA has the potential to become one of the leaders of the grocery delivery in the 10-15 minutes segment. Therefore, we are very pleased to become a partner of YallaMarket, which is the first hyper-local delivery service in the UAE, and we believe that the project has a great future” comments Igor Kaloshin, CEO of AngelsDeck.
The funding will be used to expand the presence of the company in the UAE by opening new dark stores in Dubai prior to the next financing round, which is scheduled for March 2022. By the end of the year, YallaMarket plans to launch 100 new stores across the UAE and to enter Qatar.
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