We Got Funded: Startup mrUsta Raises AED2.75 Million In Funding Round

More than ever, quality in the service industry is essential, and the UAE-based mrUsta, an online marketplace for consumers to find and book service providers founded in 2013, has strived to accomplish this- and now, investors have taken notice.

learn more about Pamella de Leon

By Pamella de Leon

mrUsta co-founder Dunia Othman and mrUsta founder and CEO Ibrahim Colak

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

More than ever, quality in the service industry is essential, and the UAE-based mrUsta, an online marketplace for consumers to find and book service providers founded in 2013, has strived to accomplish this- and now, investors have taken notice.

In a pre-series A funding round, mrUsta successfully raised AED2.75 million from investors including Precinct Partners, Millennial Partners & Co., and angel investors from Saudi Arabia and Egypt. This comes after the online service provider raised AED1.3 million from a seed funding round in August 2015, led by Precinct Partners Managing Partner Amjad Ahmad- who commends the team on their achievements within a short span of time. While the original seed money was used for rebranding and, as founder and CEO Ibrahim Colak says, "establishing a foothold in the market," the team decided to seek further funding to guarantee their startup's steady growth, as well as benefit from the expertise of their investors. "We wanted our investors to be active, and not silent partners, those that share our vision, provide insight with their business acumen, and access to their business/partner networks."

Related: Startup mrUsta Offers A MENA-based Platform For Your Service Needs

Source: mrUsta.com


Colak credits their growth to customer acquisitions, which received a "100% increase," increasing from the platform's original 2000 Ustas, to having 300 Ustas per month in the past nine months and currently 6000 Ustas as of November 2016. When they decided to seek funding, Colak says, "Our negotiations started shortly before summer, so it took a bit longer than we had had hoped due to the break. However, it was a relatively quick turnaround as everything was finalized within four months."


With the newly acquired capital, the startup plans to use it for their marketing efforts, as their immediate goal is to "reach the mass in the UAE and acquire new customers," with some of the funds set aside to financing their regional expansion, and hiring to support their marketing and sales KPIs. On the platform front, a seamless UX for both customers and service provides is still their goal, with mrUsta in Arabic in the works. Plus, Colak says Microsoft is offering them machine learning software, "which can predict time, cost and other metrics for jobs that customers would be posting." For the service providers, or rather, "Ustas", new features would soon be offered, including a "bespoke on-demand CRM platform based on the SaaS model."


Ibrahim Colak, founder and CEO, mrUsta, offers his take on pitching to investors

"First, find investors in the same field as they can mentor you through your entire business process; better yet, it would be highly beneficial if they come from a technology and/or online technology background. Also, make sure that your potential investor is in for the long run and not in it to make a quick buck. It is really important that the investor is just as excited and passionate about your concept as you are and that there is a clear understanding that you will be working together as one team and one entity, and not the stereotypical "investor-investee' relationship."

Related: How To Get Funded (And Keep Investors On Your Side)

Pamella de Leon

Startup Section Editor, Entrepreneur Middle East

Pamella de Leon is the Startup Section Editor at Entrepreneur Middle East. She is keen on the MENA region’s entrepreneurship potential, with a specific interest to support enterprises and individuals creating an impact.

Related Topics


Invest in Yourself: 10 Things Every Working Woman Should Do This Year

When striving for success, it is easy to forget about your mental and physical health. But without health, you cannot fully succeed. Follow these ten lifestyle strategies for success in your personal and professional life.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.

Business Ideas

How to Make Thousands of Dollars on the Side As a Virtual Assistant

Apply your skills and experience to create a lucrative virtual assistant side hustle or full-time business.


60 Second Business Tips: 3 Ways to Boost Confidence

Business development consultant Terry Rice on silencing self-doubt.

Growing a Business

How Facing Your Demons Improves Your Business and Your Relationships

Facing the big monsters in your life will give you unshakable confidence in your ability to perform in the future.