Saudi shipping management platform Oto closed a SAR 30 mn (USD 8 mn) series A round led by PIF-owned Sanabil Investments, according to a press release (pdf). Sadu Capital, Iliad Partners, Propeller, and Soma Capital also participated in the round. Oto previously raised SAR 12.3 mn (USD 3.3 mn) in a seed funding round back in 2021 from MEVP, Derayah Ventures, and 500 Global, according to the press release.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

What we don’t know: Information about the equity size shareholders are offering to investors and the structure of the investment wasn’t disclosed. It’s also unclear how much each institution invested in the round.

Where’s the money going? The company plans to use the fresh funds “to expand and strengthen its presence in Saudi Arabia, the UAE, and Turkey.” Meanwhile, some of the proceeds will also be used to acquire more customers, and expand the team. “It will introduce new features and enhancements on its platform targeting SMEs, enabling it to further deliver faster, and more efficient shipping experiences to their customers.”

A snapshot of KPIs: “Oto has grown its client base and currently supports more than 10k local and international brands on their platform. On a year-on-year basis, the company has doubled its revenue and achieved significant growth in orders processed.”

Building on success? Oto expanded its services into Turkey as part of wider global expansion plans last year, bringing its expertise in logistics, supply chain management, and enhanced customer experience to clients in Turkey’s retail sector. The company also partnered with UPS in December to expand shipping operations in Saudi Arabia, offering exclusive international shipping rates from the Kingdom to UPS’ network of global destinations.

About Oto: Founded in 2019, the startup provides “holistic shipping management solutions” to retailers through access to its innovative shipping gateway platform. Oto’s platform links users with over 250 regional and international courier and delivery services, offering them multi-channel retail, inventory, and point of sale options. The platform’s dashboard also permits integration with e-commerce platforms and ERP systems, in addition to the ability to sync orders, assign shipments, print labels, scan barcodes, manage operations and receive analytic reports.

IN OTHER STARTUP FUNDING NEWS-

A new Flat6Labs fund in the pipeline: Regional VC firm Flat6Labs is planning to launch a USD 85 mn seed fund that will focus on startups in Egypt, Tunisia, and Africa at large by next year, Flat6Labs CIO Dina El Shenoufy told Enterprise.

What’s next? The firm is currently in talks with a number of financial institutions — including the International Finance Corporation — over their participation in the fund, she added.

What sectors is the firm eyeing? Climate change solutions are among the firm’s priority sectors, as well as edtech, logistics, healthcare, and agritech — a field that is in high demand in Egypt and other African markets, El Shenoufy told us.

Flat6Labs’ portfolio: The firm currently manages some USD 96 mn-worth of investments in Egypt and the Arab world, El Shenoufy said. It has invested in 160 startups in the Egyptian market across various fields — including 95 companies operating in the tech, healthcare, e-commerce, and logistics sectors through its first USD 13 mn fund.

ALSO- Flat6Labs to participate in the relaunched Shell Intilaaqah Egypt Program, under a collaboration agreement with Shell Egypt, Shell Egypt said in a press release (pdf). The program aims to support over 1k Egyptian entrepreneurs a year, with Flat6Labs helping them define their mission, vision, and initial strategy.

Tags: