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Damilohun Maya
Guest
A leading home furnishing e-commerce startup, ariika has announced the successful conclusion of its Series A extension round which saw it raise $3 million in equity funding. The round was led by Beltone Venture Capital, a subsidiary of Beltone Financial Holding, and supported by UAE-based investment group Citadel International Holdings.
In 2023, the startup closed the initial stage of its Series A equity funding round, backed by Beltone Venture Capital for a 20% stake. Describing the raise as a strategic investment, CEO and co-founder, Khaled Attallah says it marks a significant milestone for the startup to accelerate its growth trajectory locally and regionally.
“With our relentless focus on compelling products, customer service, and profitable growth, we continue to outperform our peers, gain market share, and distinguish ourselves as one of the fastest-growing digital-first, design-led home brands in the region. Our strategy will always be to develop innovative, must-have products, build deep and personal connections with our consumers, and deliver a superior online and offline experience. We are a value-based brand focusing on our people, customers, quality, and profits,” he said.
Khaled Attallah
Founded in 2016 by Khaled Attallah, Shahir Arslan, ariika is a home décor direct-to-consumer (D2C) e-commerce platform that partners with artisans from around the world to create and curate modern décor brands.
The startup says it is transforming a $20 billion home and décor industry in the MENA region by consolidating a fragmented market and creating an inspirational digital-led home destination. The startup focuses on superior product assortment, competitive pricing, and an unmatched online and offline customer experience.
ariika has been on a massive expansion drive lately, capitalizing on the booming furniture market in Iran to successfully open its flagship in Baghdad. The startup is also set to open its Saudi flagship store in January 2025.
Thus, the new capital injection will be used to fuel the startup’s local market expansion through portfolio development and go-to-market strategies while strengthening its presence in its two largest regional markets of Saudi and Iraq. These markets are projected to contribute up to 50% of its consolidated business in 2025.
Growing at a compounded annual growth rate (“CAGR”) of approximately 10 per cent annually, the startup says it has achieved a CAGR of 90 per cent and is directly serving more than one million customers worldwide since its launch in 2016.
The startup also said its export segment contributes over 15 per cent of its revenue, and the brand has completed thousands of projects with leading real estate developers and industry leaders in the region. As Macrotrends continue to favour its business, ariika is uniquely positioned to expand its market share in the long term.
Thus, this latest raise is significant in that it also serves as a testament to the e-commerce company’s robust performance, achieving over 3x year-over-year (YOY) sales growth on a USD basis, with strong and sustainable profitability.
Speaking about his company’s investment in the Egypt-based e-commerce platform, Beltone Venture Capital’s CEO, Ali Mokhtar, said the venture company is delighted to back ariika and its leadership team as they work toward their vision of becoming a leader in the home and décor industry across the MENA region.
“ariika has emerged as a standout company in a thriving sector, showcasing impressive operational results in recent years. With bold expansion plans underway, ariika is strategically positioned to establish itself as the leading home furnishings brand in the region,” he said.
See also: Africa’s embedded finance market projected to grow to $39.8 billion by 2029 – report
In 2023, the startup closed the initial stage of its Series A equity funding round, backed by Beltone Venture Capital for a 20% stake. Describing the raise as a strategic investment, CEO and co-founder, Khaled Attallah says it marks a significant milestone for the startup to accelerate its growth trajectory locally and regionally.
“With our relentless focus on compelling products, customer service, and profitable growth, we continue to outperform our peers, gain market share, and distinguish ourselves as one of the fastest-growing digital-first, design-led home brands in the region. Our strategy will always be to develop innovative, must-have products, build deep and personal connections with our consumers, and deliver a superior online and offline experience. We are a value-based brand focusing on our people, customers, quality, and profits,” he said.
Khaled Attallah
ariika is on a massive expansion drive
Founded in 2016 by Khaled Attallah, Shahir Arslan, ariika is a home décor direct-to-consumer (D2C) e-commerce platform that partners with artisans from around the world to create and curate modern décor brands.
The startup says it is transforming a $20 billion home and décor industry in the MENA region by consolidating a fragmented market and creating an inspirational digital-led home destination. The startup focuses on superior product assortment, competitive pricing, and an unmatched online and offline customer experience.
ariika has been on a massive expansion drive lately, capitalizing on the booming furniture market in Iran to successfully open its flagship in Baghdad. The startup is also set to open its Saudi flagship store in January 2025.
Thus, the new capital injection will be used to fuel the startup’s local market expansion through portfolio development and go-to-market strategies while strengthening its presence in its two largest regional markets of Saudi and Iraq. These markets are projected to contribute up to 50% of its consolidated business in 2025.
Growing at a compounded annual growth rate (“CAGR”) of approximately 10 per cent annually, the startup says it has achieved a CAGR of 90 per cent and is directly serving more than one million customers worldwide since its launch in 2016.
The startup also said its export segment contributes over 15 per cent of its revenue, and the brand has completed thousands of projects with leading real estate developers and industry leaders in the region. As Macrotrends continue to favour its business, ariika is uniquely positioned to expand its market share in the long term.
Thus, this latest raise is significant in that it also serves as a testament to the e-commerce company’s robust performance, achieving over 3x year-over-year (YOY) sales growth on a USD basis, with strong and sustainable profitability.
Speaking about his company’s investment in the Egypt-based e-commerce platform, Beltone Venture Capital’s CEO, Ali Mokhtar, said the venture company is delighted to back ariika and its leadership team as they work toward their vision of becoming a leader in the home and décor industry across the MENA region.
“ariika has emerged as a standout company in a thriving sector, showcasing impressive operational results in recent years. With bold expansion plans underway, ariika is strategically positioned to establish itself as the leading home furnishings brand in the region,” he said.
See also: Africa’s embedded finance market projected to grow to $39.8 billion by 2029 – report