Expansion into Saudi Arabia Secured by Q-Commerce Startup Rabbit, an Egyptian Venture
Egyptian q-commerce startup Rabbit has announced its entry into the Saudi Arabian market, marking a significant step in the company's growth strategy. The company, founded in 2021, pioneered the q-commerce model in Egypt, offering ultra-fast deliveries for groceries, personal care items, and household essentials.
Rabbit's regional headquarters will be based in Riyadh, with operations running through a network of dark stores. The funds from a recent funding round, details of which remain undisclosed, will enable Rabbit's entry into Riyadh and Jeddah, two of Saudi Arabia's fastest-growing urban hubs.
The funding round was led by existing investors and a group of Gulf-based venture capital firms, including Raed Ventures, Global Founders Capital, and a new strategic partner based in the Kingdom. Omar Almajdouie, founding partner at Raed Ventures, stated that Rabbit's ability to optimize operations while maintaining an exceptional customer experience gives it a strong competitive advantage in new markets.
Rabbit's growth strategy revolves around deploying micro-fulfillment centers (dark stores) to enable ultra-fast deliveries. The company aims to leverage this model to fulfill over 20 million orders in Saudi Arabia by 2026. To cater to local needs, Rabbit plans to set up localized micro-fulfillment centers and launch a dedicated Saudi mobile app.
The market potential in Saudi Arabia is considerable, given the burgeoning digital economy and the Middle East’s broader e-commerce growth. The q-commerce sector is evolving fast, with the region’s cross-border e-commerce market projected to reach $50 billion by the end of 2025. This indicates significant demand for rapid delivery services like those Rabbit offers.
Ahmed Yousry, CEO and co-founder of Rabbit, described the move into Saudi Arabia as a natural progression, citing the country’s booming e-commerce sector and young, tech-savvy population. Rabbit's technology-driven logistics platform and hyper-local fulfillment centers have helped it establish a loyal customer base across Cairo and Alexandria.
Rabbit also plans to hire locally, tapping into Saudi Arabia's expanding pool of tech and operations talent. Analysts predict that the Saudi Arabian market will grow by more than 20% annually over the coming years. With this expansion, Rabbit joins other companies in the q-commerce sector that are expanding regionally.
The Middle East's q-commerce sector is experiencing a surge, driven by changing consumer behaviors and a growing preference for immediate, digital-first shopping experiences. Rabbit's entry into Saudi Arabia is part of a wave of Egyptian startups seeking to build a regional footprint, highlighting the increasing integration of MENA’s startup ecosystems.
In conclusion, Rabbit's expansion into Saudi Arabia represents a strategic move in the rapidly growing q-commerce market. The company's focus on micro-fulfillment centers, local hiring, and a tailored mobile app positions it well to capitalize on the burgeoning digital economy in Saudi Arabia and the broader Middle East.
- Venture capital firms, including Raed Ventures, Global Founders Capital, and a strategic partner based in the Kingdom, invested funds in Rabbit, enabling the startup to enter the Saudi Arabian market and expand its operations in Riyadh and Jeddah.
- Rabbit's growth strategy is centered around finance and technology, utilizing micro-fulfillment centers (dark stores) for ultra-fast deliveries, aiming to fulfill over 20 million orders in Saudi Arabia by 2026.
- As e-commerce in Saudi Arabia grows due to a burgeoning digital economy and the Middle East’s broader e-commerce growth, Rabbit's entry into the market is part of a surge in the q-commerce sector, driven by changing consumer behaviors and a preference for immediate, digital-first shopping experiences.
