Retailo, a B2B marketplace for small businesses (Kiryana stores), has acquired DXBUY, a UAE-based B2B e-commerce marketplace.
The Deal: Retailo did not disclose the amount it paid for DXBUY. Those involved in the startup will be joining Retailo.
Tell me more: DXBUY operates as a B2B marketplace for food and beverage, grocery, and retail businesses, connecting them with manufacturers, wholesalers, and distributors.
It was founded in 2019 by brothers Adnan and Rizwan Zubairi. It has raised $800,000 in disclosed funding.
Make it make sense: This acquisition of DXBUY comes almost three months after Retailo raised $36 million in Series A funding.
The Series A round was a combination of venture equity and debt.
The retail sector in the MENAP region is a $500 billion industry and has 10 million small businesses. $60 billion is locked in the hotel, restaurant, and cafe (HORECA) sector.
Between the lines: The primary reason for this acquisition is strategy and talent. It is strategic because it gives Retailo access to a lucrative subsection of the retail market.
Moreover, it’s best to acquire a startup that has sustained itself while keeping lean. According to LinkedIn, DXBUY’s team had 12 employees, excluding the founders.
You should know: Retailo was founded in 2020 by Muhammad Talha Ansari, Muhammad Nowkhaiz, and Wahaj Ahmed. It is headquartered in Riyadh, Saudi Arabia, with majority operations and leadership in Karachi.
It has raised $45 million from 11+ investors, including angels.
Big Picture: Retailo is one of the fastest-growing e-commerce startups in the MENAP region. It has grown to more than ten cities in 3 countries, including KSA, UAE, and Pakistan, in just 18 months.
This acquisition will accelerate its growth and increase its market share as it faces tough competition from other well-funded startups such as Tajir, Bazaar, and Dastgyr.