Kuwaiti E-Commerce Firm Raises $27.5 Million For Regional Expansion

An early investor in ride-hailing agency Careem is backing Kuwaiti e-commerce firm Floward, which expects to publish a revenue subsequent yr because the pandemic accelerates a shift to on-line gross sales.

The corporate stated its sequence B funding spherical raised $27.5 million and was led by STV, a Saudi expertise enterprise capital fund that beforehand invested in Careem, which was acquired by Uber Applied sciences Inc. for $3.1 billion.

Floward, which delivers flowers and items on-line, plans to make use of proceeds largely to increase within the area, after venturing into London earlier this yr.

It could go public throughout the subsequent two years and will determine on an inventory venue later this yr, founder and Chief Govt Officer AbdulAziz Al-Loughani stated in an interview. London, New York and Saudi Arabia are potential venues for the IPO, he stated.

Among the largest startup offers within the Center East have come from Kuwait, an oil-rich Gulf emirate with a inhabitants of solely about 4.7 million. These embody takeovers of Kuwait-based meals supply companies Talabat and Carriage.

Boutiqaat, a Kuwaiti on-line retailer of luxurious items and cosmetics, final yr employed Citigroup Inc. to discover strategic choices for the corporate, together with a partial sale of the enterprise and fund elevating.

Whereas the Center East has been slower to adapt to e-commerce than different areas, lockdowns to fight the coronavirus pandemic final yr have accelerated the shift to on-line buying and meals supply.

Floward has seen a surge in e-commerce gross sales, which grew 10-fold final yr in comparison with 2019. Income this yr has already surpassed the entire of 2020, placing the agency on a “clear path” to profitability, Al-Loughani stated.

The corporate at present operates in 20 cities throughout seven international locations and goals to copy its presence within the Gulf area on a extra international scale. It’s going to quickly announce a nationwide service throughout the U.Okay. after launching in London, a metropolis which alone represents a much bigger market than all the Gulf flower business, estimated to be value as a lot as $2.5 billion.

The agency is increasing into two extra Arab international locations this yr and at present evaluating a transfer into Europe. “We’re considering much more international and performing much more native,” Al-Loughani stated.

By Fiona MacDonald