- Investcorp Sanabil Investment and STV spearhead a significant $130 million pre-IPO investment round in Salla, a prominent SaaS e-commerce platform in Saudi Arabia.
- Founded in 2016, Salla has facilitated $7 billion in e-commerce sales and serves over 80 thousand active merchants, positioning itself as a key player in Saudi Arabia’s booming $20 billion e-commerce market.
- With Investcorp’s support, Salla aims to leverage this investment to fuel further expansion and innovation in the e-commerce sector, with potential considerations for a future IPO, echoing Investcorp’s successful track record in supporting companies through public listings.
Investcorp, a prominent global alternative investment firm, has announced today its leadership in a $130 million pre-IPO investment round for Salla, a leading SaaS e-commerce enablement platform in Saudi Arabia. The investment round was joined by Sanabil Investment, a wholly owned entity of Saudi Arabia’s Public Investment Fund, and STV, a regional venture capital investor and an existing shareholder of Salla.
Established in 2016 in Makkah, Salla aims to bolster the entrepreneurial landscape in Saudi Arabia by providing SMEs and aspiring entrepreneurs with a proprietary SaaS solution to realize their e-commerce goals. Currently, Salla empowers merchants to tap into a thriving $20 billion e-commerce market, which is projected to see a growth rate of over 25% annually in the foreseeable future. To date, Salla has facilitated $7 billion in e-commerce sales and boasts a clientele of over 80 thousand active merchants.
Co-founded by Nawaf Hariri and Salman Butt, Salla now boasts a team of over 160 developers dedicated to technology and product enhancement. Its offerings include a fully digitalised and automated solution, enabling merchants to swiftly establish their e-commerce websites, commence online sales within hours, accept online payments, and fulfil orders to end-users. Salla is seamlessly integrated with online payment solutions and logistics partners, offering over 400 applications on its platform to support merchants throughout the lifecycle of managing an online business.
The investment led by Investcorp signifies a significant milestone for Salla, as it positions the company for further expansion and innovation within the burgeoning e-commerce sector in Saudi Arabia. With the support of Investcorp, Sanabil Investment, and STV, Salla is poised to continue its mission of empowering entrepreneurs and driving economic growth through e-commerce enablement in the region.
Investcorp has invested in Salla through its Investcorp Saudi Pre-IPO Growth Fund LP, which focuses on providing equity growth capital to companies primarily located in Saudi Arabia. Robin Mansour, a Principal at Investcorp, will be joining Salla’s Board of Directors as part of this investment.
The fund offers investors the opportunity to participate in the growth of leading businesses across various sectors such as business services, transport and logistics, healthcare, and consumer goods. By investing in these companies, the fund aims to support their expansion and eventual access to capital markets.
Walid Majdalani, Investcorp’s Head of Emerging Markets Private Equity, highlighted the significant growth of SMEs in Saudi Arabia, driven by the country’s transformation agenda. He emphasized Salla’s role as a key enabler in supporting the development of new companies in the e-commerce ecosystem.
Majdalani expressed optimism about the potential for Saudi companies to go public, particularly as scale-ups and unicorns demonstrate success at the local and regional levels. He noted Salla’s impressive growth and strong margins, stating Investcorp’s excitement to support the company’s next phase of growth. Additionally, he mentioned the possibility of exploring a potential future listing for Salla, aligning with Investcorp’s track record of supporting companies through IPOs.
Nawaf Hariri, CEO and co-founder of Salla, expressed gratitude for the trust and investment from Investcorp and Sanabil in their company. He emphasized that this support reflects confidence in Salla’s vision and potential as a platform. Hariri highlighted the significance of this investment in advancing their mission to create opportunities and empower individuals, SMEs, and enterprises in Saudi Arabia and beyond. He reiterated Salla’s commitment to delivering innovative and customer-centric solutions that simplify and improve the e-commerce experience for merchants.
Investcorp, through its Investcorp Saudi Pre-IPO Growth Fund LP, had previously led a pre-IPO funding round in TruKKer, a prominent digital freight network in the MENA region. The platform boasts over 45,000 trucks on its network. Following this success, the fund also invested in NourNet, a leading ICT company in Saudi Arabia. NourNet serves over 1,200 B2B clients across various industries.
Investcorp’s involvement underscores its commitment to supporting innovative ventures in the region. Their investments in Salla, TruKKer, and NourNet reflect their confidence in the growth potential of these companies and their contributions to advancing the digital economy in Saudi Arabia and beyond. With the support of Investcorp and Sanabil, Salla is poised to further expand its reach and impact in the e-commerce landscape, benefiting merchants and customers alike.
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Last Updated on March 5, 2024 by Safiya K
