The Salla story: from Makkah to more than 80,000 merchants
Two guys from Makkah built a platform that competes with Shopify in Saudi Arabia. What did Salla get right, and how did it raise more than $138 million?
Imagine: two guys from Makkah built a platform that competes with Shopify in Saudi Arabia. This is the story of Salla.
The beginning: a simple tool
Salla started in Makkah in 2016 by Nawaf Hariri and Salman Butt. At first it was a tool that made selling through social media easier, before it turned into a full store platform.
The idea was simple: the merchant here doesn't want translated foreign software, he wants a platform made for his market.
How does it make money?
It has a free plan with no commission on sales, and paid plans for when the merchant grows. And around the store there are services: payments, shipping, and an app store.
Make the first experience easy and risk-free for the customer, and let revenue come when they see the value.
Funding
- 2020: An $8.5 million Series A round led by STV, with Raed Ventures and Vision Ventures. At the time it had more than 10,000 merchants.
- 2024: A $130 million pre-IPO round led by Investcorp, with participation from Sanabil and STV. The company said it serves more than 80,000 active merchants.
How do you compete with Shopify? With localization
- Local payment: mada, Tabby, Tamara
- Local shipping: Aramex, SMSA
- E-invoicing ready to go
Shopify is stronger at global selling, but Salla speaks the language of the Saudi merchant.
The lesson for you as a founder
Don't copy the global product. Build the version that understands your market.
Sources: Wamda 2020, Wamda 2024, Bloomberg 2024.
