The Public Investment Fund (PIF) wholly owns Sanabil Investments, which led the successful SAR 30 million ($8 million) Series A funding round for OTO, the top logistics and shipping gateway in the Middle East and North Africa. Sadu Capital, Iliad Partners, Propeller, and Soma Capital also participated. Prior to this, OTO had raised SAR 12.3 million ($3.3 million) from angel and venture capital firms, such as 500 Global, MEVP, and Derayah Ventures.
The money will be used by OTO to increase and fortify its position in Turkey, the United Arab Emirates, and Saudi Arabia. In order to further provide SMBs and Enterprise online retailers with faster and more efficient shipping experiences, it will be introducing new features and enhancements to its platform.
OTO provides merchants with a comprehensive range of technological solutions that enable them to effectively manage, ship, track, and analyze their shipping and storage operations. OTO synchronizes and automates every step of the shipping process by connecting merchants directly with over 250 domestic and international shipping companies and e-commerce platforms. This integration offers a single platform for all logistics requirements, improves efficiency, and streamlines operations. Merchants can use OTO’s competitive pre-negotiated rates to purchase shipping labels directly from OTO, or they can link their own shipping contracts to their OTO account.
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.”
With over 10,000 domestic and global brands supported on their platform, OTO has expanded its clientele. Year over year, the company has experienced a notable increase in orders processed and doubled its revenue.
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.”
According to projections, the ecommerce market in the Gulf Cooperation Council (GCC) is expected to grow significantly and reach $50 billion by 2025. With an average annual growth rate of 17.8%, this remarkable expansion is mostly the result of Saudi Arabia and the United Arab Emirates. Concurrently, it is anticipated that the Turkish e-commerce market will grow strongly, rising 11.58% annually between 2024 and 2029. The market is expected to reach a valuation of $49.5 billion by 2029. These vibrant markets are expected to collectively surpass $150 billion by 2030, underscoring the region’s rapidly evolving digital commerce environment.
