"We Got Funded!" KSA-Based Yalla Plus Raises US$2.7 Million In Seed Funding As It Aims To Reach 100,000 Hospitality Entrepreneurs Over the next five years, the startup aims to establish its presence across 50 countries, including those in the Middle East, Europe, and Southeast Asia.

Yalla Plus, a Saudi Arabia-based tech platform that caters to restaurants and cafes, has raised US$2.7 million (SAR10 million) in a seed funding round led by Merak Capital, a KSA-based investment firm that focuses on tech startups. The round also saw the participation of Khwarizmi Ventures, a KSA-based venture capital firm that invests in early-stage startups, Isometry Capital, a US-based next-generation asset management company, as well as angel investors from both the Middle East and the US.

Founded in 2022 by Abdullah Alrabeh and Bader Alnasser, Yalla Plus offers the hospitality and restaurant sector with an integrated point of sale (POS) system comprising payment management tools, customer feedback processing, and delivery solutions. The platform was thus created with a vision to become a technical enabler for hospitality companies, and enhance their operational efficiencies and performances, through offering detailed data analytics. In just two years since its launch, Yalla Plus has already expanded its operations beyond Saudi Arabia, to 11 countries in total.

Over the next five years, the startup aims to establish its presence across 50 countries, including those in the Middle East, Europe, and Southeast Asia, and offer its services to 100,000 entrepreneurs. According to co-founder and CEO Alrabeh, the current global hospitality ecosystem offers a ripe opportunity to tap into. "With the rise of connectivity and mobile technology, businesses are swiftly shifting from traditional pen-and-paper or WhatsApp methods to streamline software solutions," Alrabeh notes. "Integrated and automated processes allow businesses to leverage data for better decision-making and performance optimization. At Yalla Plus, we provide entrepreneurs with tools for digital transformation through an all-in-one platform with powerful analytics, helping them stay competitive in the evolving market."

Of course, with new funds at their disposal, the Yalla Plus expansion plans have now undoubtedly gained pace. "We will use the newly raised seed funds to accelerate product development and expand our market presence in the GCC and adjacent markets," Alrabeh adds. "Our short-term focus is on enhancing our POS system to serve food and hospitality entrepreneurs with more features for operational efficiency and customer engagement. We also plan to expand into new verticals such as inventory management and customer engagement to provide a more comprehensive suite of tools for businesses to grow faster and more efficiently."

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It is precisely this propensity to cement itself at the center of the global hospitality industry that has played a major role in the startup gaining Merak Capital's financial support. "Yalla Plus demonstrated significant growth by rapidly expanding its customer base and securing key partnerships within the foodtech sector," says Merak Capital Partner and CEO Abdullah Altamami. "Their ability to develop compelling solutions and capture market share was a decisive factor in our investment, highlighting their potential to lead in this space."

Abdullah Altamami, Partner and CEO, Merak Capital. Source: Merak Capital

Altamami adds that many of Yalla Plus' aspirations as a company aligned well with that of Merak Capital's own goals- another reason the investment firm was keen on backing the hospitality tech startup. "Yalla Plus reflects the qualities Merak Capital values in tech-driven ventures: innovation, scalability, and a deep understanding of market dynamics," Altamami reveals. "Their strategic use of technology to enhance operational efficiency and customer experience aligns with our vision of investing in pioneering companies capable of transforming industries. Their proactive approach to leveraging data and technology for market disruption fits our mission to support companies driving meaningful change."

In its bid to cater to a plethora of geographical markets, however, the Yalla Plus team has had to be mindful of how they adopt technological trends within a given nation. "When serving diverse markets, we've learned that a tailored approach is essential," co-founder Alrabeh notes. "We've noticed varying technology preferences, such as iOS being more popular in some regions and Android in others. Small and medium enterprises (SMEs) may prefer managing their operations on tablets in certain areas, while mobile phones are more common in others. Similarly, unique business models like drive-thrus thrive in specific areas. Adapting our platform to these local preferences ensures we provide the best experience for all our users."

But while global expansion makes up one part of Yalla Plus' mission, the startup is also, still, very rooted in its vision to reshape Saudi Arabia's hospitality industry. Indeed, it aims to position itself as "a global Saudi tech firm" by attracting top local and international talents. "Our objectives in Saudi Arabia also align with Vision 2030's goals of growing the hospitality sector," Alrabeh continues. "We aim to be the digital infrastructure powering the Saudi hospitality experience, while also supporting entrepreneurs with digital tools and fostering strategic partnerships with other tech players. Our focus is on empowering entrepreneurs and contributing to Saudi Arabia's economic development."

And as per Merak Capital's Altamami, Yalla Plus' endeavors could set a preamble for other up and coming startups in this sector in the years to come. "Yalla Plus aims to make a major impact in the foodtech sector in Saudi Arabia by setting new standards for technology integration, customer satisfaction, and operational excellence," Altamami says. "Their success story inspires innovation among tech startups, demonstrating that local companies can achieve global influence through strategic use of technology. This sets a precedent for the broader ecosystem, encouraging startups to pursue ambitious goals in the Kingdom's fertile ground for tech-driven entrepreneurship."