Saudi Logistics Platform OTO Raises $8 Million in Series A Led by Sanabil Investments

OTO, the leading shipping gateway and logistics platform in the Middle East and North Africa, has successfully raised SAR 30 million ($8m) 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. Previously, OTO had raised SAR 12.3 million ($3.3m) from VC funds and angel investors including MEVP, Derayah Ventures and 500 Global. 

OTO plans to utilise 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 their customers. 

OTO offers a robust suite of technological solutions that empower merchants to seamlessly manage, ship, track, and analyse their shipping and storage activities. By directly linking merchants with over 250 local and international shipping companies and e-commerce platforms, OTO synchronises and automates every aspect of the shipping process. This integration streamlines operations, enhances efficiency, and provides a unified platform for all logistics needs. Merchants can connect their own shipping contracts to their OTO account or buy shipping labels directly using OTO's competitively pre-negotiated rates. 

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 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. We are excited to partner with them to support their growth plans across the region.” 

OTO has grown its client base and currently supports more than 10,000 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. 

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." 

The Gulf Cooperation Council (GCC) ecommerce market is poised for significant growth, with projections indicating it will reach $50 billion by 2025. This impressive expansion, driven primarily by Saudi Arabia and the UAE, boasts an average annual growth rate of 17.8%. Simultaneously, the Turkish ecommerce market is expected to experience robust growth, with an annual increase of 11.58% from 2024 to 2029. By 2029, the market size is projected to hit $49.5 billion. Together, these dynamic markets are on track to exceed $150 billion by 2030, highlighting the region's escalating digital commerce landscape.

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