Verofax is an AI-powered product twinning service that provides marketing core competency solutions to six of the world’s top 100 global brands. Their computer vision technology ensures the security of the supply chain, validates purchases for rewards and helps brands digest real-time consumption data to improve operational efficiency.
Verofax has conducted three funding rounds, raising a total of $3.1m with oversubscribed rounds. They have world-leading VCs on their Cap table, including 500 startups, Dubai Angel Investors, Benson Oak Ventures, and others.
Verofax is at the scale-up stage, providing marketing core competency solutions to six of the world’s top 100 global brands, with a goal to onboard an additional 40 brands by Q4 2023. They are also expanding their operations to Saudi Arabia and across the MENA region in partnership with Microsoft as a digital native partner and with Saudi MCIT powered by Plug and Play.
MBRIF has provided expert advisors to Verofax, facilitating opportunities for engagement with government and corporate networks in the region. This has expanded their relationships and partnership opportunities. Additionally, Verofax has been connected with global and regional investors, critical for scaling their next phase of growth.
SME Story: Founders of Verofax on Direct-to-Consumer Marketing Solutions
Verofax is a scale-up company that provides marketing core competency solutions to six of the world’s top 100 global brands. The founders of Verofax, Jamil Zablah and Wassim Merheby, have extensive experience in sales and marketing for global enterprises. They noticed that traditional brands selling in multi-brand stores were struggling to connect with consumers effectively and faced challenges in driving trial, retention, and advocacy.
These challenges arose due to the channel holding data, hindering two-way communication between brands and consumers. Brands had to resort to buying costly market analysis reports based on small sample sizes, which came late and hindered accuracy. The problem became even more apparent when compared to the 25% growth of direct-to-consumer brands.
In 2018, the emergence of blockchain and AI technology presented an opportunity to turn products on the shelf interactive. With the use of a unique weblink for direct-to-consumer communication and product validation, brands could offer personalized recommendations and promotions, validate authenticity, and provide consumers with more information about product qualities.
This led the founders to establish Verofax with the goal of developing a direct marketing solution that would help brands turn their products into their best marketing and communication tool. Verofax seeks to replace the outdated barcode technology from 1967 that serves only to recognize items in stores.
In 2019, Verofax faced numerous challenges in the GCC region, such as a lack of infrastructure for startup support and banking facilities, as well as limited access to experienced professionals in developing and promoting SaaS solutions. The UAE was not recognized as a software development hub, and it was challenging to attract tech talent due to high living costs and limited budgets.
Despite these challenges, Verofax secured pre-seed investors who shared their vision to disrupt the digital product marketing industry estimated to be worth $300bn. Verofax aims to offer an alternative tool that would delight customers and enable direct communication and marketing for brands.
Verofax: An AI-Powered Product Twinning Service
Verofax is an award-winning AI-powered product twinning service that helps enterprises increase supply chain transparency and auditability, reduce operational costs with analytics, and enhance customer acquisition and retention marketing. Their proprietary solution allows brands to turn every product interactive and a channel of direct communication.
Unique Selling Proposition and Business Model
Verofax’s computer vision technology ensures the security of the supply chain and validates purchases for rewards. Their AI analytics help brands digest real-time consumption data to improve operational efficiency. Businesses can accrue immediate benefits by leveraging Verofax’s technology at low cost and rapid deployment.
Funding and Expansion Plans
Verofax has conducted three funding rounds (pre-seed, seed, and a bridge convertible round totaling $3.1m), each of which has been oversubscribed. They have world-leading VCs on their Cap table, including 500 startups, Dubai Angel Investors, Benson Oak Ventures, Wami Capital, Trove Capital UK, Dubai Silicon Oasis, Privity, and others.
Verofax is currently raising a safe note round of $3m with several leading VCs such as Navig8 Group committing $2m to help scale their operations to the EU and North America and provide their services to global brands. They are also expanding their operations to Saudi Arabia and across the MENA region in partnership with Microsoft as a digital native partner and with Saudi MCIT powered by Plug and Play.
Expansion Plans
Verofax is at the scale-up stage, providing marketing core competency solutions to six of the world’s top 100 global brands. They are currently working with 20 of the leading CPG brands in the world to help them implement their solution. Their goal is to onboard an additional 40 brands by Q4 2023 and simultaneously launch their A round fundraising. This will allow them to further expand their offerings to brands and retailers worldwide.
MBRIF and its impact on Verofax
At their stage of growth and expansion, MBRIF has been invaluable for Verofax by providing expert advisors of the highest caliber whose insights have added tremendous value to their operations.
Despite being located in the UAE, Verofax has garnered significant interest from global clients and prospects due to the unique nature of their solution. However, they faced difficulties securing investments from VCs without technical due diligence teams to assess their B2B SaaS startup. Nevertheless, Verofax’s innovative solution continues to attract attention, and their expansion plans are well underway.
Facilitating Opportunities for Growth
MBRIF has not only provided expert advisors for Verofax, but it has also facilitated opportunities for engagement with government and corporate networks in the region. This has expanded their relationships and partnership opportunities. Additionally, Verofax has been connected with global and regional investors, critical for scaling their next phase of growth.
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