Raff raises $1.7 million to bridge online brands with physical retail

Saudi retail technology startup Raff has secured $1.7 million in pre-seed funding to facilitate the connection between online consumer brands and physical retailers in the Gulf Cooperation Council (GCC) region. Vision Ventures led the financing round, with participation from 500 Global, Palm VC, Oqal Group, and Salla co-founder Salman Butt, among other investors.

Established in 2024 by Ali Al Qudah and Abdul Kareem Munla, Raff's platform simplifies the distribution, inventory management, order fulfilment, and payment processes for consumer brands looking to expand into physical retail. The investment will be utilized to bolster Raff's regional expansion across the GCC, accelerate product development, and enhance its AI capabilities.

The GCC retail market is valued at over $300 billion annually, presenting a significant opportunity for Raff's end-to-end platform. By digitising distribution, commercial operations, inventory management, order fulfilment, and payments, Raff streamlines the process of expanding into physical retail channels for consumer brands. For retailers, the platform automates key workflows and simplifies vendor management, integrating seamlessly with local point-of-sale and accounting software.

Ali Al Qudah, co-founder and CEO of Raff, explained that the company was founded to address the challenges faced by growing brands attempting to transition from online sales to physical retail. He emphasized that the investment will enable Raff to accelerate its vision, expand across the GCC, and continue developing the infrastructure supporting the next generation of retail.

Kais Al-Essa, founding partner and CEO of Vision Ventures, expressed enthusiasm for partnering with Ali and the Raff team, noting the high-execution talent they represent. Vision Ventures previously supported Salla's transition from offline to online retail. Al-Essa sees a substantial opportunity for Raff as brands increasingly seek to expand from online to physical retail channels, simplifying the high-friction processes involved in retail technology and logistics.

Since its launch less than 18 months ago, Raff has facilitated the growth of over 900 brands across nine countries, including the GCC and the UK.