Eureeca, the first multi-regulated global equity crowdfunding platform, today announced that it has funded its latest UAE business.

el Grocer, a leading grocery delivery app in Dubai, has successfully raised $432,179 (Dh1.587 million) with 59 investors from 10 countries via Eureeca. Due to continuing interest in the campaign, the el Grocer proposal will remain open for investment for a limited period of time, the company said.  
The announcement comes shortly after Eureeca secured the first equity crowdfunding licence in the Middle East & North Africa (Mena) region issued by the Dubai Financial Services Authority (DFSA). This indicates a marked increase in the level of interest from local investors looking to invest in growth businesses, and allows Eureeca to offer investors, be it institutional or everyday investors, a stable multi-regulated platform to invest in the businesses of the future with even higher investor protection mechanisms.

“el Grocer is an example of one of the fastest growing UAE companies with a strong customer base who snapped up the opportunity to own shares in the business. By leveraging Eureeca as a regulated funding vehicle, its tools and guidance, el Grocer were able to successfully reach a wide network of potential investors who have an appetite for this type of investment,” said Chris Thomas, co-CEO and co-founder of Eureeca, which has offices in Dubai, London, Kuala Lumpur, and Amsterdam.

“The DFSA licence gives investors greater confidence in investing in businesses on Eureeca with el Grocer successfully reaching its funding targets and going into overfunding in just 23 days,” he added.

About 64 per cent of el Grocers investors come from the UAE while others came from countries including Saudi Arabia, Canada and Belgium. The largest single investment in the el Grocer equity crowdfunding campaign was $100,000 with an overall average investment size of just over $7,000.
el Grocer’s proposal has resonated well with investors as the Mena and Turkey grocery delivery market is estimated to be worth $65 billion with 35-40 per cent of all grocery transactions in the region happening via mobile phones. El Grocer currently has over 45 stores covering 89 areas across Dubai with major retail partners including Circle K, 7-11, Al Maya, Lifco, KP Mart, and others. In 2016, el Grocer acquired competitor Quickshop.ae.

According to Raed Hafez, chairman of el Grocer: “We are now setting our sights on domestic expansion, as well as further product development and enhancements. This investment also allows us to focus on the all important customer acquisition and client retention. Eureeca made raising funds easier as it gave our campaign greater credibility and visibility and offered our investors enhanced protection due to the platform’s multiple licenses.”

Since its launch in 2013, Eureeca has grown to an active investor base of just under 15,000 from 42 countries. 19 businesses have been funded in EMEA and just under $6 million has been raised on the platform. Over the last year, the platform has seen a clear shift in direction away from smaller raises of $100,000 to larger raises of between $250,000 to $1 million, it said. –TradeArabia News Service