ReserveOut, an online restaurant reservation platform announced plans for an aggressive geographical expansion in the Middle East and North Africa with a particular focus on Saudi Arabia and Egypt.
ReserveOut launched in Jordan in 2012 and it is currently based in seven cities across MENA. The company provides a restaurant reservation platform with 24/7 online reservations, real-time booking and confirmation.
The planned expansion is fueled in part by a $1.3 million financing round by existing and new investors that concluded in 2014. ReserveOut plans to expand its various teams, move into new territories and improve penetration in existing markets.
“In the short term...we want to be established in every main city,” said Khalil Shadid, founder and CEO of ReserveOut. “They are major markets that need to be fully operational as soon as possible.”
The number of restaurants adopting ReserveOut’s online reservations grew by 130 percent last year. More than 400 restaurants currently use ReserveOut’s channels. Total restaurant revenue through online reservations reached $8.4 million while user adoption of the company’s services grew by 60 percent.
“We plan to consolidate and grow our presence in Saudi Arabia and Egypt, where internet penetration and large youthful audiences present a pressing demand for reliable online services,” Shadid said.
ReserveOut anticipates a satisfactory expansion in Egypt in the span of six to nine months. In Saudi Arabia, it plans to further establish itself in Jeddah for a possible period of six months before expanding to Riyadh. “There is a possibility of spreading yourself too thin,” Shadid said. “We want to properly establish our current markets.”
Shadid and his team are looking beyond this year. They expect to complete another round of Series A funding in Q4 of this year, with a new expansion campaign ready to launch in early 2016.
“For the next round, we are looking for deeper penetration in existing markets, increase brand awareness and to cover remaining cities,” Shadid said. “We are looking at Morocco and Turkey.”