Capillary Technologies has signed a strategic joint venture agreement with Saudi-based Veda Holding to form Capillary Arabia. The venture will allow Capillary Technologies enhanced access to the Kingdom’s rapidly growing retail, F&B and Manufacturing sector, and the ability to provide continued on-ground support to customers.
Saudi Arabia is host to a growing and vibrant international luxury retail culture. The recent shift in Saudi Arabia’s retail sector can be attributed to the change in buying habits of consumers who demand and have access to an omnichannel shopping experience. According to Euromonitor, the retail industry in the Kingdom is currently worth $106 billion and is forecast to steadily rise to $119 billion by 2023. While store-based retailing continues to dominate the sector accounting for $103 billion of the overall market in Saudi Arabia, non-store retailing, which includes online shopping, direct selling, mobile internet, social media, and home shopping, is set to grow by 93% from now to 2023.
“We are excited to strengthen our presence in Saudi Arabia with a joint venture with Veda Holding. It demonstrates our commitment to the local market and gives us the opportunity to onboard local talent to provide support to our customers in their preferred method,” said Aneesh Reddy, CEO, and Co-founder Capillary Technologies. “The retail sector is on the cusp of transforming into a technology-fueled, consumer-driven industry. Capillary Arabia would be fulfilling the gap in the retail tech in the Kingdom. Our proven success record in the region and customer-centric solutions combined with Veda’s robust retail network and superior market knowledge will provide Capillary Arabia with an unparalleled advantage to develop and digitize the retail ecosystem. By providing superior AI-powered technology we are set to help brands tap the immense opportunities by redefining their consumer experience across platforms, improve brand loyalty, and always be consumer-ready.”
Founded in 2017 by Fahad Alhokair, Veda Holding is an investment holding company providing value and growth capital to startups and mature companies. Veda’s investment portfolio includes a number of world-class luxury fashion and beauty brands. “Consumers live a fast-paced life and demand an equally fast and personalized experience while shopping instore or online. We are delighted to join forces with Capillary to help brands reinvent themselves and their approach to not only grow their customer base, but also add value to their purchasing experience,” said Fahad Alhokair, Founder, Veda Holding. “Veda Holding is committed to redefine the retail experience in the country and help retailers drive growth. We believe this joint venture will enable us to jointly explore and develop the retail ecosystem and bring it on par with global standards.”