Teeela, Kuwaiti online toys and gifts retailer, finalised a pre-Series A funding round worth $3.75 million today.
The investment will fund Teeela’s plans to expand its regional footprint, with an initial focus on Saudi Arabia and the UAE.
The financing was provided primarily by Saudi Arabian investment and wealth management firm Wealth Well, alongside Riyadh-based private equity firm Mada’a Investment Company and other investors.
The region’s gifts market, which includes toys and children’s gifts, amounts to $30 billion, said Teeela.
The online retailer aims to capitalise on this growing industry.
“We are proud to receive such great support from pioneering investors in the sector who believe in our vision to be at the forefront of providers of family gifts and enjoyable experiences,” said Abdulwahab Al Khulaifi, co-founder and CEO of Teeela.
“There is a huge opportunity to serve the gifting market with an exceptional range of products and personalised gift-wrapping options, providing customers with unmatched speed and convenience.
“Through funding we aim to enhance our regional expansion strategy, support our product development processes and attract the best regional talent to be part of our system environment and our journey towards growth and prosperity.”
The Middle East’s e-commerce industry was valued at $24 billion in 2020 and will amount to $50 billion by 2025, according to market and consumer data firm Statista.
“Teeela has carved a strong e-commerce niche in Kuwait which, through the right strategic partnerships and investment, can proliferate across the Middle East,” said Abdullah Abdulaziz Al Othaim, CEO of Mada’a Investment Company
The kingdom’s e-commerce market is projected to be worth $11.74 billion by the end of the year, and rise at a compound annual growth rate of 19.5 per cent to value $20 billion by 2025, said Statista.
The UAE’s e-commerce market is estimated to value more than $8 billion by 2025, marking according to e-commerce hub EZDubai and market research firm Euromonitor International.
“Teeela is in a strong position to grow at an accelerated pace by taking advantage of the increasing growth in e-commerce and access to multiple markets in the Arabian Gulf and the Middle East,” said Aqeel Al Rajhi, CEO of Wealth Well.
“The business is ideally suited to meet the high online retail expectations of GCC consumers.”
Teeela boasts customer conversion and retention rates that are five times greater than other e-commerce markets, said the company.
In keeping with its objective to increase productivity and expand its regional footprint, Teeela intends to hire more employees during the second half of this year.
Established in 2017, the e-commerce site offers family products and children’s toys, with the option to gift items to others.
