UAE technology start-up Dukkantek raised US$10 million in a new funding round as the company aims to expand into new markets and improve its core technology.
The latest funding round, which was led by Dubai's early-stage venture capital firm Beco Capital, also included participation from Rocketship, Colle Capital, Comma Capital, AMK Investment Office, Chaos Ventures and Wamda Capital, Dukkantek said on Monday.
The capital “will provide further access to global expansion, improve the platform’s technology stack and hire the best talent in the region”, it said.
The store management platform previously raised $5.2m in a seed round in October, taking its total funding to $15.2m.
“We are pleased to have witnessed an exponential growth of our company as we provide a technological solution to SME [small and medium enterprises] businesses across the world,” Sanad Yaghi, co-founder of Dukkantek, said.
“This second round of funding comes at the perfect time as we are looking to explore growth in additional markets, increase our team size and further advance our technology.”
Dukkantek was founded in January last year. It provides a digital storefront management platform for retailers, offering advanced in-store boxes fitted with a point-of-sale system that can be accessed online from anywhere in the world.
The company uses cloud computing to offer predictive analytics and transparency on operations and helps manage retailers' digital presence.
The cloud-hosted software allows business owners to keep track of transactions, monitor sales, calculate value-added tax, generate reports and measure profit margin.
The coronavirus pandemic hastened digital adoption in the Middle East and North Africa, leading to an increase in online shopping.
The region's e-commerce market is expected to reach $49 billion in 2025, with growth of almost 55 per cent from 2021, a report by EZDubai, an e-commerce zone in Dubai, and Euromonitor International showed in March.
The UAE’s e-commerce market alone is forecast to grow 60 per cent to more than $8bn by 2025 from 2021.
“Launching seven countries in 18 short months since founding is no easy feat, yet the Dukkantek team has managed to do it in such a seamless and capital-efficient manner,” said Abdulaziz Al Sagha, venture partner at Beco Capital.
Dukkantek — dukan is the Arabic word for corner shop — currently supports 13 million small and medium sized retailers across the UAE, Oman, Qatar, Kuwait, Bahrain, Turkey, Saudi Arabia, and is seeking opportunities in North Africa, it said.