Dukkantek, which was created by Ali Al Sayegh, Sanad Yaghi, and Shadi Joulani in January 2021, has expanded across the MENA region with SMB merchants using their technology for customer services, business operations, and speedier growth, according to the company.
The store management platform Dukkantek reported a $10 million pre-series A fundraising round on August 19.
BECO led the investment round, with significant contributions from Rocketship and Colle Capital. The round also featured Comma Capital, AMK Investment Office, Chaos Ventures, and Wamda Capital as strategic investors. This investment round follows their $5.2 million seed round in October 2021, bringing the total amount of funds raised to $15,2 million.
Dukkantek, which was started by Ali Al Sayegh, Sanad Yaghi, and Shadi Joulani in January 2021, has expanded across the MENA region with SMB merchants using their technology for customer services, business operations, and speedier growth, according to the company.
Currently, the platform drives the digital ecosystem for 13 million SMB retailers in the United Arab Emirates, Oman, Qatar, Kuwait, Bahrain, Turkey, and Saudi Arabia, and it is seeking more opportunities in North Africa.
Commenting on the occurrence Sanad Yaghi, co-founder of Dukkantek, stated, “Small and medium-sized business owners have been marginalised by the technology transition for far too long; now we are meeting their unmet demands. We offer a technological platform with three distinct value propositions that enables these merchants to compete in the digital marketplace.”
This contains a collection of technologies that allow merchants to operate their businesses more efficiently. Payment options allow retailers to offer clients a greater variety of ways to settle their invoices. And an e-commerce product that provides merchants with everything they need to begin selling online for the first time and to manage that operation alongside their physical store. “Having a single system that combines all aspects of the business is crucial, since many retailers struggle to keep track of inventory when selling both online and in physical stores,” Yaghi said.
Yaghi added, “We’ve observed an increase in the number of customers utilising analytics tools on the site, which assist them, for instance, determine which products would sell best. Three-quarters of the platform’s businesses are currently trading in this manner. Also, many merchants are eager to increase the number of stores they operate, but are unable to do so due to a shortage of available financing in the region, which we can investigate.
BECO Capital’s Abdulaziz Shikh Al Sagha, who led the fundraising round, stated, “It is extremely rare to find a company and team that have been able to execute as well as Dukkantek has to date. The Dukkantek team has accomplished a remarkable feat by launching in seven countries within eighteen months of the company’s inception, all while remaining capital efficient. We are thrilled to join forces with Sanad, Ali, and the rest of the team as they seek to expand their impressive traction and realise their vision of digitising merchants.”
During the coronavirus pandemic, community shopkeepers in the United Arab Emirates who had a digital presence and were unable to take online payments were badly impacted by the decline in client foot traffic. This accelerated digital adoption in the MENA region, resulting in a surge in online commerce.
Earlier this year, a survey by EZDubai, an e-commerce zone in Dubai, and Euromonitor International projected that the region’s e-commerce sector will reach $49 billion in 2025, up over 55 percent from 2021. In addition, the UAE’s e-commerce market is expected to increase by 60 percent to more than $8 billion by 2025, up from $4 billion in 2021.
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