"We Got Funded!" Kuwait-Based Teeela Raises US$3.75 Million In Pre-Series A Round To Boost Expansion In KSA And UAE With the new funding, the team plans to boost its growth across the GCC, mostly notably in KSA and UAE.
By Pamella de Leon •
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Teeela, a Kuwait-based gifting and toy platform and app, has raised US$3.75 million in a pre-Series A round. The round was led by Saudi Arabian investment firm Wealth Well and supported by strategic investment from Mad'a Investment Company, Al-Akeel family, and other investors.
Launched in 2018 by Abdulwahab Al-Khulaifi, Ibrahim Al-Khulaifi, and Yahya Al Refaei, Teeela started as an online gifting platform that built its user base by guaranteeing same-day delivery services, and an average turnaround from order to handover of four hours. Today, Teeela also offers its users customized and personalized gifting options, enhancing the toy-buying experience by including bespoke wrapping and last-minute ordering. In just a few years, the app has received steady traction and high customer retention, with conversion rates said to be "between four to five times higher than average e-commerce marketplaces." According to Al-Khulaifi, Teela has grown its customer base by 20% month-on-month in Kuwait, while achieving a healthy retention cohort.
The platform is thus eager to capitalize on the Middle East's toy and gifting industry (estimated to be about $30 billion, as per the startup's statement), with co-founder and CEO Al-Khulaifi stating how the team is keen to further push their vision of being the "number one choice for family gifting experiences" going forward. "There is a huge opportunity to serve the gifting market with an exceptional range of products and personalized gift-wrapping options, providing customers with unmatched speed and convenience," he says. "This funding will underpin our regional expansion, support product development, and strengthen our ability to attract top regional talent to be part of our journey."
Source: Teeela
Teeela's investors also commend the platform's ingenuity. "Teeela's team is committed to delivering a unique customer experience, ranging from the app journey to various new and innovative products," says Aqeel Alrajhi, CEO, Wealth Well. "Teeela is well-positioned to take advantage of the rapidly changing e-commerce market and expanding its presence across the GCC and the broader MENA region."
Meanwhile, Abdullah Abdulaziz Al-Othaim, CEO of Mad'a Investment Company, adds, "Teeela has carved a strong e-commerce niche in Kuwait which, through the right strategic partnerships and investment, can proliferate across the Middle East. The business is ideally suited to meet the high online retail expectations of GCC consumers."
With the new funds, the team plans to expand its operations across the across the GCC, mostly notably in KSA and the UAE. The investment will also be used for product development, as well as to bring in key regional talent as part of its recruitment phase in 2022. Up next, Al-Khulaifi notes that the team plans to offer new services to advance Teeela's gifting experience model. "Our aim is to be a holistic gifting platform for all the family, driven by a network of strategic partnerships across the industry."
