Dubai-based online marketplace Melltoo has announced an undisclosed pre-series A funding round co-led by China-based venture capital (VC) firm Gobi Partners. The company will use the funds to expand to Saudi Arabia.
Founded in 2014, Melltoo is an online marketplace for used items. The company allows third-party sellers to list their items for sale and enables e-commerce and corporates to liquidate their old retail stock and used company electronics. The company connects buyers and sellers while also handling logistics and order fulfillment.
“At Melltoo, our aim is to help people and companies sell their stuff in the most efficient and easiest way possible,” said Morrad Irsane, co-founder at Melltoo.
“Since launching our liquidation service, we’ve grown transactions 300 per cent and are on track to quadruple our [gross merchandise value] GMV by the end of the year. We’ve increased the number of sellers 6x in the past six months and have on-boarded over 30 e-commerce and corporate clients who liquidate through the platform,” said Sharene Lee, co-founder at Melltoo.
The investment marks Gobi Partners’ first foray into the Middle East market. The VC recently opened an office in Bahrain to spearhead investments in the region.
“We have seen similar startups in China and [South East Asia] that have achieved success with this strategy,” said Thomas G. Tsao, chairman and founding partner at Gobi Partners.