OTO raises 30 million Saudi Riyals in Series A funding round led by Sanabil Investments
OTO, the leading shipping and logistics platform in the Middle East and North Africa, has successfully raised 30 million Saudi Riyals (equivalent to 8 million dollars) in a Series A funding round.
The funding round was led by Sanabil Investments, a company wholly owned by the Public Investment Fund (PIF), with participation from Sadu Capital, Iliad Partners, Propeller, and Soma Capital.
Previously, OTO had raised 12.3 million Saudi Riyals (3.3 million dollars) from venture capital funds and individual investors, including MEVP, Derayah Ventures, and 500 Global.
OTO plans to use these funds to expand and strengthen its presence in Saudi Arabia, the United Arab Emirates, and Turkey.
The company will introduce new features and improvements to its platform targeting small and medium-sized businesses and online merchants, enabling them to provide faster and more efficient shipping experiences for their customers.
OTO offers a comprehensive range of technological solutions that enable merchants to manage, track, and analyze their logistics activities seamlessly.
By directly connecting merchants with over 250 local and international shipping companies and e-commerce platforms, OTO synchronizes and automates every aspect of the shipping process.
This integration optimizes operations, increases efficiency, and provides a unified platform for all logistical needs. Merchants can link their shipping contracts to their OTO account or purchase shipping labels directly using pre-negotiated rates provided by OTO.
Mohammad Alrazaz, 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 the Kingdom’s Vision 2030.
OTO focuses on providing innovative solutions that enable merchants to streamline their operations and manage logistics with unparalleled efficiency.”
A spokesperson from Sanabil Investments added, “The past few years have significantly highlighted the shipping industry and increased the need for smart shipping solutions.
OTO has built a fully integrated platform to help businesses of all sizes meet their logistical requirements. We are excited to partner with them to support their growth plans across the region.”
OTO has achieved substantial growth in its customer base and currently supports over 10,000 local and international brands on its platform.
Annually, the company’s revenue has doubled, and there has been a significant increase in the number of processed orders.
Furkan Uzar, CTO and co-founder of OTO, said, “This funding propels us toward achieving our vision of becoming the gateway to online shipping.
By bridging the technological gap between sales channels and shipping providers, we can accelerate our growth and deliver automated and streamlined shipping solutions to our customers.”
Projections indicate significant growth in the e-commerce market in the GCC, expected to reach 50 billion dollars by 2025. This notable growth, driven by Saudi Arabia and the UAE, is witnessing an annual growth rate of 17.8%.
The Turkish e-commerce market is also expected to see strong growth, with an annual rate of 11.58% from 2024 to 2029. By 2029, the market size is expected to reach 49.5 billion dollars.
These dynamic markets are anticipated to exceed 150 billion dollars by 2030, highlighting the rising digital commerce landscape in the region.
