The round was a mix of equity and venture debt with the MENA’s top venture capital fund STC leading the equity investment
Reflecting the global and regional demand for e-commerce, Dubai-based e-commerce aggregator, Opontia, has raised $42 million in a Series A funding round to fuel its expansion into new markets around MENA and the world. The round was a mix of equity and venture debt with the MENA’s top venture capital fund STC leading the equity investment. As part of the deal, Ahmad Alshammari, general partner of STV, and Saed Nashef, founding partner of Read Ventures, will join the board of Opontia.
Existing investors Raed Ventures and Global Founders Capital were joined by new investors New York fund Upper 90 and VentureSouq in this new funding round. The Venture debt proceeds make up 50% of the $42 million round, funded by Partners for Growth, a billion-dollar San Francisco fund. With these new funds, Opontia hopes to expand into more high-potential growth markets like Egypt, Pakistan and Nigeria.
Rapidly augmenting across the MENA and central and eastern Europe, the e-commerce market is as alive as ever. Although the pace of innovation and entrepreneurship is rapidly accelerating in some western markets, the Middle East is lagging behind. Opontia aims to bridge this gap by supporting regional entrepreneurs to expand their presence in key growth markets and develop emerging technology.
“We are committed to continuing to support e-commerce entrepreneurs in realising the potential of their brands. Through Opontia’s support, entrepreneurs can achieve scale and development as we lead on daily operations while we enable them to continue to benefit from the growth in their brands,” says co-founder, Philip Johnston. “Opontia works by acquiring small e-commerce businesses with big potential and scaling them, while allowing entrepreneurs to profit from future growth.
Since launching in March 2021, the e-commerce aggregator has grown to include a team of 50 people, acquired four brands and signed terms for more 15 additional brands. So far, the startup has expanded beyond its headquarters in Dubai, branching out offices in Poland, Turkey and Saudi Arabia.