Yozo bags $1.7M to expand its AI revenue engine for e-commerce
AI & Data

Yozo bags $1.7M to expand its AI revenue engine for e-commerce

Raza·2:59 PM TST·January 28, 2026
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UAE based startup Yozo secures $1.7 million in funding to develop an AI powered revenue optimization platform for e commerce merchants, targeting conversion, pricing, and customer intelligence.

Dubai based e-commerce technology startup Yozo has raised USD 1.7 million in a funding round aimed at accelerating the development of its AI driven revenue engine designed for online merchants. The capital will be used to expand product capabilities, scale engineering operations, and support regional market expansion as e-commerce businesses increasingly turn to automation and data intelligence to improve margins and customer lifetime value.

Yozo’s platform focuses on applying artificial intelligence to core revenue levers across e-commerce operations, including dynamic pricing, demand forecasting, customer segmentation, and conversion optimization. As global e-commerce competition intensifies, merchants are seeking tools that go beyond analytics dashboards to deliver real time, automated decision making. According to data from Statista, global e-commerce sales are projected to exceed $8 trillion by 2027, intensifying demand for revenue optimization technologies that can scale across high volume digital storefronts.

The funding round comes amid rapid growth in the Middle East’s digital commerce sector. The UAE’s e-commerce market alone is expected to reach $17 billion by 2025, driven by high smartphone penetration, digital payments adoption, and logistics infrastructure, according to Dubai Chamber of Digital Economy. Platforms like Yozo are positioning themselves to serve merchants navigating rising customer acquisition costs and shrinking margins across competitive marketplaces.

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Globally, AI-powered revenue and personalization platforms have attracted strong investor interest. Companies such as Vue.ai and Dynamic Yield have demonstrated how machine learning can be applied to merchandising, pricing, and customer engagement at scale, with Dynamic Yield later being acquired by Mastercard. These precedents highlight a broader shift toward AI native commerce infrastructure rather than rule based optimization tools.

Yozo’s focus on revenue automation aligns with a broader trend identified by McKinsey, which notes that AI driven personalization and pricing strategies can increase revenues by up to 15 percent when deployed effectively. By consolidating multiple revenue functions into a single platform, Yozo aims to reduce operational complexity for merchants while improving performance across the funnel.

The UAE startup ecosystem has seen a steady rise in early-stage capital deployment, particularly in vertical SaaS and AI infrastructure. Recent funding activity across fintech, logistics, and retail technology reflects growing confidence in regionally built platforms with global applicability, as tracked by MAGNiTT’s MENA venture reports. Yozo’s funding round adds to this momentum, particularly within the retail and e-commerce enablement segment.

With fresh capital secured, Yozo enters a critical phase of execution focused on product refinement, merchant acquisition, and measurable revenue outcomes. As e-commerce businesses increasingly prioritize efficiency and profitability over pure growth, AI-powered revenue engines are emerging as foundational tools, positioning startups like Yozo within a rapidly evolving global commerce stack.

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Raza is TechScoop's Senior Tech Correspondent with a razor-sharp focus on the MENA startup ecosystem. With over 51 published articles, he has become one of the most prolific voices covering fintech innovation, enterprise technology, and the region's digital transformation. His investigative reporting has uncovered major funding rounds before they hit mainstream news, and his analysis of market trends is regularly cited by investors and founders alike. When not chasing the next big story, Raza can be found moderating panels at regional tech conferences.

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