Dubai-based logistics company Fetchr raised $15 million in new investment as startup funding in the region picks up after the COVID-19 led slowdown.
The money came from early investors of the company Beco Capital, Tamer Group based in Saudi Arabia and French shipping company CMA CGM and its logistics arm CEVA Logistics.
The firm is also aiming to attract another $10 million before the end of the year along with a plan to rebrand itself.
The Dubai based Fetchr said that the latest funding round will help the company to diversify its revenue, expand operational footprint and grow its top-line.
Fetchr plans to expand its operations toward the US, Europe and China.
The company said that it is exploring strategic partnerships for accelerated growth with global service providers and large retailers by implementing an asset-light business model.
Venture financing had found itself to be halted in the crisis brought about by COVID-19. Recently, the start-up funding is picking up momentum once again after the economic slowdown in the first half of this year.
Data platform Magnitt reveals that startups in the Middle East and North Africa (MENA) secured $659 million in funding, an increase of 35 percent year-on-year, in the first half of 2020.
The fresh round of funding for Fetchr comes on the back of an overhaul of technology, leadership and strategy at the company that saw streamlining of operations.
The pandemic has brought about a lasting change in the consumer behavior. There has been a sudden spurt in the on-demand delivery service and this has boosted the growth prospects of the company greatly.
Major GCC retailers saw online sales rise from 50 percent to 800 percent. Two of Fetchr’s core markets – Saudi Arabia and UAE – saw about 90 percent of its consumers buying online.
Fetcher was founded in 2012 and offers first-and last-mile logistics and delivery services. The company currently operates in Bahrain, UAE, Egypt and Saudi Arabia.