Source: Forbes
Dubai-based self-storage provider The Box has raised $12.5 million in debt financing from investment firm Shorooq, according to a statement issued Thursday.
Expanding self-storage solutions
The new capital will support the construction of a new self-storage facility in Dubai, bringing The Box’s total debt funding to $31.5 million through various credit facilities since 2014.
The Box caters to the strong demand for flexible storage solutions driven by the UAE’s expat population, offering self-storage spaces, removal services, and storage supplies for individuals and businesses alike.
Established 2006 by Wadih Haddad, the company operates 30 facilities, including a flagship 140,000-square-foot location, offering storage units ranging from 25-square-foot lockers to 1,000-square-foot rooms. It serves over 2,000 clients across quick commerce, event management, and logistics sectors.
Haddad said that Shorooqʼs strategic support will help expand the company’s reach. “We look forward to elevating the standards of the self-storage industry in the region to meet the demands of modern urban living.”, he stated.
Key background
Shorooq has already been venturing into the Middle East’s nascent venture debt market since 2021 when it launched The Nahda Fund I, its first credit practice. In 2023, Shorooq launched The Nahda Fund II, and in May 2024, it announced the first close of the $100 million credit practice.
Shorooq was founded in 2017 as an investment firm backing tech-driven startups across the MENA region and beyond through its venture capital and credit divisions. Its founding partners, Mahmoud Adi, and Shane Shin, were recently recognized among the region’s top VC leaders in Forbes Middle East’s Top Venture Capitalists 2024 list.
Middle East’s venture debt market
The Middle East’s venture debt market has experienced significant growth since 2021, according to Wamda’s annual report released last month.
In 2021, eight deals were recorded, totaling $262.6 million. The momentum continued in 2022, with 16 deals worth $496 million.
In 2023, venture debt funding surged to $1.7 billion across 10 deals, marking a sharp increase before declining in 2024 to $331 million across 19 deals.
