A Dubai-based start-up specializing in cut flowers has just secured another round of funding from entrepreneurship platform Wamda Capital to expand its business.

Floranow, a B2B floral marketplace that connects growers from around the world with hotels, grocery stores and event planners in the UAE will get at least $3 million in the new round of funding that is co-led by Wamda and includes Dash Ventures, Jabbar Internet Group, Sirocco Holdings, Adamtech Ventures, Zuaiter Holding Capital, HB Investments and angel investors.

Floranow, is planning to expand its business within the Gulf Cooperation (GCC) region, including Kuwait and Saudi Arabia.

“We are very excited to close this round that will support our efforts to build a global marketplace linking growers to buyers across the floral industry,” said Charif Mzayek, founder of the company.

Besides growing its business within the GCC region, Mzayek said, they are looking to expand their “network of partners” from other areas, including China, Colombia, Holland and Kenya.

Countries in the GCC have a huge appetite for cut flowers. In 2017 alone, the region imported $124 million worth of cut blooms, up 40 per cent from $75 million in 2010.

Floranow had earlier secured financing from Wamda, Jabbar Internet Group and Dash Ventures in 2017.

Fadi Ghandour, executive chairman of Wamda, said they are “very excited” about the new financing deal as it is in line with their efforts to build a “global marketplace linking growers to buyers across the floral industry.”

A new study has found that a big proportion of SMEs in Dubai are unable to secure financial assistance from banks, with the rejection rate for loan applications pegged at 60 to 65 per cent, about six times higher than in countries within the Organisation for Economic Cooperation and Development (OECD) region.

(Writing by Cleofe Maceda; editing by Seban Scaria)

(cleofe.maceda@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019