OTO, a Saudi-based shipping gateway and logistics platform that works across the MENA, has raised $8 million in a Series A funding round, led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF), with participation from Sadu Capital, Iliad Partners, Propeller, and Soma Capital.
Why it Matters? Public Investment Fund (PIF) owned companies continue their support to logistics companies. OTO currently works in Saudi Arabia, UAE, and Turkey. The platform links merchants with over 250 local and international shipping companies and over 20 e-commerce platforms. It also allows merchants to connect their own shipping contracts to their OTO account or buy shipping labels directly using OTO’s competitively pre-negotiated rates.
More to Know:
- OTO was founded by Mohammad AlRazaz and Furkan Uzar in 2019 and had previously raised $3.3m from VC funds and angel investors including MEVP, Derayah Ventures and 500 Global.
- The company plans to utilize the funds to expand and strengthen its presence in Saudi Arabia, UAE, and Turkey. It will introduce new features and enhancements on its platform targeting SMBs and Enterprise online merchants, enabling it to further deliver faster, and more efficient shipping experiences to its customers.
- OTO said it currently serves more than 10,000 local and international brands.
- On a YoY basis, the company said it doubled its revenue and achieved significant growth in orders processed.
Related Comments:
- Mohammad AlRazaz, Co-Founder and CEO, 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. We are focused on delivering innovative solutions that enable merchants to streamline their operations and manage logistics with unmatched efficiency.”
- A spokesperson from Sanabil Investments added: “The last few years has 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. We are excited to partner with them to support their growth plans across the region.”
- Furkan Uzar, CTO and Co-founder of OTO, stated, “This funding propels us toward our 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.”