Supy, a UAE-based technology start-up that streamlines transactions between restaurants and suppliers, raised $8 million in a new funding round as the company aims to boost its technology capabilities and expand into new markets.
The latest funding round, which was led by Dubai's early-stage venture capital firm Beco Capital, also included participation by existing investors such as Valia Ventures and Cotu Ventures, Supy said in a statement on Tuesday.
New investors joining the round included Global Ventures and AMK Investment Office, in addition to other strategic investors.
“We are on a mission to become a global leader in this space, and our growth since our pre-seed funding round is a testament that we are on track with the right set of partners,” said Dani El-Zein, co-founder and chief executive of Supy.
Saudi Arabia is the “perfect location for our first international expansion outside the UAE and into the global market”, Mr El-Zein said.
“Supy was created to solve a crucial problem for one of the most dynamic industries and we can’t wait to expand our software offerings to our customer base.”
Gulf countries are investing in growing an entrepreneurship ecosystem as they look to diversify their economies and fuel post-pandemic growth.
Despite the Covid-19 pandemic, regional start-ups continue to attract financing to support their operations.
Start-ups in the Middle East and North Africa raised $176m in May from 42 deals, data from venture capital platform Wamda showed.
Founded in February last year, Supy has experienced a 10-time year-on-year growth in monthly orders and gross merchandise value. In the first half of this year, the start-up processed more than 250,000 orders from restaurants to suppliers and launched operations in five new cities.
The company plans to invest in “bolstering its tech, strengthening its product offering, scaling out it’s Saudi Arabia presence and launching its bespoke settlement and payment solution to help suppliers seamlessly reconcile invoices while allowing restaurants to better manage their payables and cashflow”, the statement said.
Supy’s free app allows end-to-end ordering between restaurants and suppliers. It lets restaurants place orders within minutes, keep track of all orders and record the exact quantities they are receiving.
It also helps them make smart purchasing decisions with real-time insights into their business, with the ability to view dashboards and reports to better understand their purchasing trends, in turn reducing waste and cost.
“Having tracked this space, Supy has built a platform that is loved by its users which has allowed the company to leapfrog the market as a clear category leader,” said Abdulaziz Al Sagha, investing partner at Beco Capital.
Earlier this year, Supy launched its web portal, allowing larger groups and chains with more complex operations to streamline their procurement operations.