Dubai-based online services marketplace mrUsta has raised Dhs2.75 million in a pre-Series A funding round. Investors who participated in the round included Precinct Partners, Millennial Partners & Co, and angel investors from Saudi Arabia and Egypt.
The financing will be used to accelerate growth, expand the platform to key regional markets, and increase the staff strength.
mrUsta is an online marketplace that connects Ustas, which refers to the service providers, as it means ‘master’ or ‘guru’ in Arabic, to customers in need of their services. It charges the Ustas for leads, following a pay per lead model, whether it’s a call, message or reply to a job posting.
The marketplace can be accessed through website and apps (iOS and Android). It allows customers to directly communicate with service providers to finish tasks from painting homes to moving to cooking and mowing the lawn.
Currently, it claims to serve 10,000 customers a month and over 6,000 active Ustas across 300 categories.
The startup, launched by Ibrahim Cholak and Dunia Othman in 2014 and initially bootstrapped by founders, previously raised Dhs1.2 million in a seed funding in August 2015.
The previous round was led by Amjad Ahmad, former CEO of NBK Capital Partners, a MENA-based private equity firm.
Home services startups are getting quite a bit of investor interest in the MENA region.
The round was led by venture capital firm AddVenture at an undisclosed valuation, the firm said in a statement.
Founded in 2013, MoveSouq raised seed and angel rounds in 2013 and 2015. The startup claims to have helped over 50,000 households in Dubai and Abu Dhabi find and book their services online last year.