Saudi Arabia’s digital marketplace Sary, which connects small businesses with wholesalers, has raised $75 million in financing to expand across the Gulf, increase its workforce and grow its range of products and services.
The Series C funding round was led by Public Investment Fund-backed Sanabil Investments, bringing Sary's total funding raised to date to $112m. New investors in the latest round include Wafra International Investment Company and Endeavor Catalyst – with STV, MSA Capital, Rocketship.vc, VentureSouq and Ra'ed Venture as existing investors.
Sary aims to capitalise on the intra-trade volumes across the Gulf countries by providing local traders with a digitalised supply chain.
“Over the last 24 months, Sary has built one of the largest and most efficient FMCG [fast moving consumer goods] distribution networks in KSA,” Mohammed Aldossary, Sary co-founder, said. “As a Saudi-based start-up, the $1.59 trillion broader GCC market is a natural next step for us.”
Start-ups in Saudi Arabia recorded their best ever quarter for fund-raising in the three months ending September 30, attracting $205m in 34 deals, according to data platform Magnitt. As part of wider plans to diversify its economy from oil, the kingdom plans to boost small and medium enterprises’ (SMEs) contribution to gross domestic product to 35 per cent by 2030, from 20 per cent currently.
Sary was founded in Riyadh in April 2018 by former Careem general manager Mr Aldossary, and Khaled Alsiari. The company connects wholesalers of consumer goods directly to small and medium-sized retailers.
Sary said it will use the funding to integrate local and third-party services.
It will also cater to unbanked small businesses in the Middle East region, which, it says, currently face a $240 billion credit gap.
The company has already started to develop embedded finance capabilities, which are expected to reduce cashflow issues during transactions.
“Sary’s rapid growth reflects the progress the company has made over the last few years to build Saudi Arabia’s largest B2B digital marketplace platform,” a Sanabil Investments official said.
“As business requirements ease across the GCC, Sary’s innovative operations and cutting-edge technologies will give the company a huge advantage as it expands across the region while generating greater value through additional products and services.”
