Table of Contents
Introduction to YallaHub
In the existing dynamic global environment of performing business activities, “Startups” play a vital role in the development and reshaping of the market and driving multiple factors such as innovation and increasing employment. It has been observed that the region of the Middle East is efficiently moving towards the concept of startups, and United Arab Emirates (UAE) considers a key player and hub of startups.
There are numerous factors that have a significant impact on the development of countries, such as rules, policies of tax, infrastructure, technological advancement, economic and political conditions and favourable business environments such as strategic locations. It is important to understand the value of funding to achieve the objectives of the thriving ecosystem, which leads to up-scaling new startups.
The concept of a “Funding Round” demonstrates the diverse stages of a startup’s lifecycle in which the striking factor is the financial resources that are required for extensive growth of the business or new startups. The series of rounds contain the A, B, and C rounds, in which every round indicates the competency and maturity of the company in order to enhance the financial capital, strategy to utilize financial resources, and engagement of investors.
- In this report, we will discuss the profile of “YallaHub”, a Dubai-based marketplace aggregator, and their success in Pre-Series Round “A”, the success of raising $6 million, which demonstrates the significant growth of the company.
- This report furthermore will provide rich insights into YallaHub’s achievement associated with its funding factor under the intense competitive landscape in UAE.
- Investigation about the strategies adopted by the company for efficient use of its resources. Finally, this report will be concluded by providing some suggestions on the basis of the productive insights which can be beneficial for the company in its next round of startups (ArabianBusiness, 2023).
COMPANY PROFILE (YallaHub)
YallaHub is considered one of the notable companies in UAE, and its headquarters is located in Dubai; it offers opportunities to multiple brands for innovative startups because it is the primary role of the company to operate a B2B (Business-to-Business) e-commerce marketplace aggregator. YallaHub primarily focused on cultivating ways for numerous brands to ensure their presence across the Gulf Cooperation Council (GCC) region and driving global Omni channel sales.
It was developed by the actual company YallaMarket, which is considered by the masses because of its efficient delivery services. With the passage of time, YallaHub applied some strategies to divert its operation by deploying its resources in effective ways. This strategic allocation of resources such as human resources, technology advancement, and expansion of infrastructure enables the company to optimize its operations towards e-commerce. This initiative differentiates YallaHub from other competitors in the market and positions this company as a significant and key player in the e-commerce aggregator landscape.
The profile of YallaHub indicates that currently, near to 100 brands from different sectors are using this platform, and all the large, medium and small-scale enterprises working in the UAE market are performing their business activities confidently on YallaHub. The portfolio incorporated with the brands is globally acknowledged, such as Coca-Cola and Vkusvill, considered giants in the health food sector.
There are different services provided by YallaHub are unique and enable them to be distinct themselves from others, such as window service, which enable other brands to ensure their entry in a unified way to show their presence in the GCC market. Finally, the Omni channel sales services are also associated with the different platforms and managing professionally, such as Careem, Noon, Deliveroo, Amazon, and NowNow, alongside e-commerce platforms and merchant’s personal sales channels powered by YallaWeb and Shopify.
YallaHub FUNDING ROUND
It has been observed that YallaHub achieved a milestone in its rigorous journey and successfully acquired $6 million in a pre-Series “A” funding round. This stage is considered the transitional phase of managing funding and creating the liaison to cover the distance between the “Seed Funding” and series “A” funding. The seed funding is said to be the initial financial projection for starting up a new business, and series “A” funding demonstrates the biggest round in which businesses foster growth and development. Pre-Series A funding plays a crucial role in the evolution of startups and mainly aligns it with the financial resources in order to identify and drive the activities according to the market potential and engage all the investors in this subsequent funding round (Zawya, 2023).
It has been analyzed that YallaHub’s pre-Series A round involved different groups of investors and demonstrated all the facts aligned with the potential of the company. The main sources of accumulation of finance are investors from different areas, particularly from the MENA region, and private investors, associations, and entrepreneurs such as “Fedor Ovchinnikov,” who is the founder of Dodo Brands. It is the core factor of YallaHub to build trust among its investors, and the business model and existing stability of the company also incorporate effectively to investors (Zawya, 2023).
This funding round illustrates that in this funding round, the endorsement factor of YallaHub vitally contributed to the value proposition, and this factor not just enabled the company to remain competitive in the market but also increased its research into the market. The main purpose behind conducting the market research acquiring rich insight by interacting with the customers and other enterprises, which allows them to improve their platform and reach to maximum market and finally draw productive strategies (Zawya, 2023).
USAGE OF FUNDING AND DEVELOPMENT PLAN
This section discussed the strategic plan for utilizing the financial resources gathered from its pre-Series A funding round. There are two main functional areas in which the financial projection of $6 million will be made in which, including the geographical expansion of operations and the development of the IT infrastructure of YallaHub.
It is clearly defined that a major portion of the funding will be injected into the development and advancement of IT infrastructure, which will lead to the success of YallaHub in future. The main segment in the development of information technology includes the improvement in payment or transactions on their digital platform. Apart from this company is seeking to ensure the addition of new features in their e-commerce platform, which enhance the user experience, such as final consumers and B2B customers. Furthermore, this initiative of ensuring investment in IT provides a competitive advantage over other players in the market, particularly assisting them to improve their single-window service for Omni channel sales. The analytics indicate the existing market of YallaHub, illustrated in the images given below.
The geographical expansion of YallaHub plans includes covering those areas of the MENA region where there are still gaps and opportunities which can be covered by using the funding. The most prominent and appropriate markets which need to be covered include the Kingdom of Saudi Arabia and Qatar because, in these markets, there is a significant potential for growth and opportunity which can be grabbed by the company. Moreover, the economies of these countries are growing rapidly, the masses are tech-oriented, the internet user rate is high, and they are highly focused towards digitalization initiatives. This initiative of funding allows them YallaHub to cover multiple aspects in these markets, such as increasing their customer base, conducting new partnerships, and expanding their portfolio. Finally, strategic growth can be possible by deploying funds in these markets. In this way, there are different factors through which it can be a leader in the MENA region.
MARKET ANALYSIS AND COMPETITORS IN THE UAE
This section will conduct a market analysis of the UAE market e-commerce industry, which has grown rapidly in recent years, particularly after the pandemic of Covid 19 and the trend of business changed by the disruption of IT. The penetrations of the internet enhance which allow many companies to develop their digital customer basis in this perspective with the expansion of e-commerce YallaHub performing its operations in the highly competitive market of UAE (FinSMEs, 2023).
There are some important and key players in the market which are considered striking competitors in the UAE market, particularly Souq (owned by Amazon), Noon, InstaShop, Skladdubai, royoapps.com, indulogistics.com, and locus. sh and Talabat. It has been observed that Souq has been rebranded with Amazon. ae in 2019 and offering services in the region and acknowledging notable digital platforms in the market providing a wide range of product categories. At the same time, Noon and Talabat are also performing activities which are directly associated with e-commerce platforms and increasing the competition in the e-commerce aggregators (FinSMEs, 2023).
SUGGESTIONS FOR IMPROVEMENT IN THE NEXT FUNDING ROUND
In the next funding round, there are some important suggestions which can be acknowledged or considered by YallaHub on the basis of extracting insights from the theoretical framework.
Data-Driven Approach
It is important for YallaHub to focus on data-driven insight for the preparation of future funding rounds. In this way, the company will be able to understand the behaviour of customers, increase the efficiency of operations, and continuous improvement in the delivery of services. Furthermore, this approach demonstrates how technical-oriented this company is and how it is struggling to cultivate potential growth.
Develop Strategic Partnerships
The trend of running a business has changed upto some extent. In this regard, it is important for YallaHub to conduct strategic partnerships with some notable national and international well-renowned brands. This factor allows the company to improve its competitive positioning.
Improving its Brand Presence
Marketing is considered the key principle of improving brand image and presence globally. In this regard, it is necessary for the company to develop an effective marketing strategy and create positive liaison with the public. However, it is a striking way to share its success stories with the general public and get feedback from people and share their reviews which illustrate the satisfaction of the customers. In this way, YallaHub’s next round of funding can be improved.
Proven Business Model
The core aspect which helps to YallaHub improve its funding round is sharing the effectiveness and efficiency of the business model with investors. The reason to share their business model is to enhance their financial resources, improvement in sales, and develop a customer base, allowing YallaHub to develop the interest of big investors in the region.
References
ArabianBusiness. (2023). Dubai-based marketplace aggregator YallaHub secures $6m in pre-series A funding. https://www.arabianbusiness.com/money/corporate/funding/dubai-based-marketplace-aggregator-yallahub-secures-6m-in-pre-series-a-funding
YallaHub. (2022). Yalla!Hub – Get instant E-commerce Fulfillment & Warehousing Services. Yallahub.ae. https://yallahub.ae/
YallaHub. (2023). Yalla!Hub – Market analytics of your goods. Yallahub.ae. https://yallahub.ae/analytic-en
Zawya. (2023). Marketplace aggregator YallaHub completes the pivotal step, secures $6mln in pre-series A. Www.zawya.com. https://www.zawya.com/en/press-release/companies-news/marketplace-aggregator-yallahub-completes-pivotal-step-secures-6mln-in-pre-series-a-yvpx07wd
SEMrush. (2023). SEMrush. SEMrush. https://www.semrush.com/
FinSMEs. (2023, July 18). YallaHub Raises $6M in Pre-Series A Funding. FinSMEs. https://www.finsmes.com/2023/07/yallahub-raises-6m-in-pre-series-a-funding.html#google_vignette
