RIYADH: Saudi logistics platform OTO is set to expand into the UAE and Turkiye, following a successful SR30 million ($8 million) series A funding round.
The company announced that the financing was led by Sanabil Investments, a wholly-owned entity of the Public Investment Fund, with additional contributions from Sadu Capital, and Iliad Partners. Propeller and Soma Capital also participated in the deal, according to a press release.
This follows a previous raise of SR12.3 million from venture capital funds and angel investors including Middle East Venture Partners, Derayah Ventures, and 500 Global.
This investment supports Saudi Arabia's National Logistics Strategy, which seeks to rank the Kingdom among the top 10 countries globally in performance in the sector by the end of the decade, in line with Vision 2030 objectives.
Mohammad Al-Razaz, co-founder and CEO of OTO, said: “Securing this funding round is a testament to our team’s dedication and our commitment to transforming the shipping and logistics sector in line with Saudi Vision 2030.”
The company claims its platform integrates with over 250 local and international shipping companies and e-commerce platforms, enabling merchants to manage, ship, track, and analyze their logistics activities.
The platform also offers merchants the option to connect their own shipping contracts or purchase shipping labels at pre-negotiated rates.
He added: “We are focused on delivering innovative solutions that enable merchants to streamline their operations and manage logistics with unmatched efficiency.”
Investor confidence in OTO’s platform is bolstered by projections showing Saudi Arabia’s e-commerce revenue is expected to grow at 13.5 percent annually through 2027, outpacing the global average growth rate of 11.2 percent, according to Agility Logistics.
The platform plans to use this funding to expand its presence in Saudi Arabia, the UAE, and Turkiye by adding new features and enhancing its platform, focusing on small and medium-sized businesses and e-commerce merchants.
The release stated that the Turkish e-commerce market is projected to grow at an annual rate of 11.58 percent from 2024 to 2029, reaching $49.5 billion by 2029.
“The last few years have put a significant spotlight on the shipping industry and increased the need for smart shipping solutions. OTO has built a platform with a fully integrated set of functionalities to help companies of all shapes and sizes meet their logistics requirements,” a spokesperson from Sanabil Investments stated.
OTO serves over 10,000 local and international brands and has seen its revenue double along with a notable increase in orders processed year-over-year.
Furkan Uzar, chief technology officer and co-founder of OTO, said that this funding propels the company toward its vision of becoming the shipping gateway of the internet.
“By bridging the tech gap between sales channels and shipping providers, we can accelerate our growth and offer customers streamlined, automated shipping solutions,” he added.
