Retail supply chain startup Retailo raises $2.3m in pre-seed round

Middle Eastern retail supply chain startup Retailo announced its launch from stealth mode after raising US$2.3 million in a pre-seed round led by early-stage VC firm Shorooq Partners.

Early-stage venture funds 500 Startups and 92 Ventures also participated in the round alongside strategic angel investors from the region, according to a statement. With the investment, Retailo has become 92 Ventures’ first portfolio company.

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Founded earlier this year, Retailo offers a mobile app that provides retailers, manufacturers, distributors, and wholesalers access to a list of suppliers. The business-to-business marketplace aims to be a one-stop shop for informal grocery retailers in Saudi Arabia and Pakistan, an industry that currently has a market value of roughly US$100 billion.

Retailo said it will focus on Saudi Arabia first as its home market, then establish a presence in the Pakistan market after proving its concept.

The company is led by three co-founders, namely Talha Ansari, Mohammad Nowkhaiz, and Wahaj Ahmed. They carry with them experience from regional startups such as Careem, Rocket Internet, Daraz, Foodpanda, and Shopistan.

“[The Middle East, North Africa, Afghanistan, and Pakistan region] is home to 700 million individuals and 10 million [small to medium-sized enterprises]; and its unorganized retail sector presents the perfect opportunity to increase the efficiency of supply chain by utilizing technology and real-time data,” the founders said.

The capital infusion marks another key investment from Shorooq Partners, which targets startups building lasting solutions for the MENAP region. It also recently invested in Pakistan’s Airlift Technologies, which raised US$10 million in its series A round in July this year.