- Startup is working towards artificial intelligence to assist farmers in deciding the best products they need to grow on their farms during different times as market demand and supply shift.
- The e-commerce market size is estimated at $40b with an annual growth rate of 3.5% over the next 10 years.
Saudi Arabia based fresh produce e-commerce startup – Haseel – has raised $6.6 million in series A round to solve market gaps and help ease bottlenecks while unlocking growth opportunities for farmers in the country and the region.
The funding was led by Vision Ventures with participation from Arzan Ventures, Riyad Taqnia Fund, Sky Horizon, Aid for Investments, along with prominent angel investors.
Haseel, founded in 2018 in Riyadh by Sultan Al Haddab, delivers fresh produce daily to homes or restaurants within two hours through its mobile app.
“We are very proud of the trust of our clients and partners. Haseel is just touching the surface of one of the largest retail sectors in Saudi Arabia. We are determined to become the leaders in this market and our growth and market acceptance rates reflect that.” Al Haddab said.
Adding value to farmers
The startup aims to invest in technology, cement its position in the current markets, and invest in talent to take it to the next level.
Al Haddab saw a clear problem in the fresh produce market with the existence of several layers of distributors that add additional margins making the end product expensive and losing farmers valuable revenues that they deserve.
E-commerce has grown by over 60 per cent in the last two years in Saudi Arabia, which is 2.5 times the average international growth rate, according to a study by BCG and Meta (previously facebook) published in December 2021.
The current market size is estimated at $40 billion with an estimated compound annual growth rate (CAGR) of 3.5 per cent over the next 10 years.
In addition to its technology, sourcing, and logistics, the startup is working towards artificial intelligence to assist farmers in deciding the best products they need to grow on their farms during different times as market demand and supply shift.
Strong demand
Haseel today operates and serves clients in over 16 cities in Saudi Arabia. It has more than 110 employees and 35 chilled cars for the best possible transport experience and quality of food.
To date, Haseel has served over 400,000 clients and sold over 10 million kilograms of vegetables and fruits while it has grown over 600 per cent in B2B during the last year.
Kais Al-Essa, Founding Partner and CEO of Vision Ventures, said that the demand continues to grow, and businesses and consumers alike need a trusted supplier they can depend on.
According to MagniTT’s e-commerce 2022 Venture Investment Report, the sector is ranked in the top three industries by both funding and deals across the Middle East and North Africa region.
The funding grew by 235 per cent between 2020 and 2021 to reach a record-high last year. A total of 87 e-Commerce transactions were closed across MENA in 2021, with a year-on-year growth of 16 per cent.
Saudi accounted for 38 per cent of the total capital deployed in e-commerce last year.