Food delivery service Calo scores $39 million in Series B extension as it sets eyes on the UK

Calo, a prominent food delivery startup based in the Middle East, announced on Tuesday that it has successfully raised $39 million in a Series B extension, spearheaded by AlJazira Capital. This latest funding round marks a significant increase from its initial $25 million raised in December, attracting investments from existing partners such as Nuwa Capital, STV, Khwarizmi Ventures, and Al Faisaliah Group. The newly acquired funds will be strategically utilized to broaden Calo's reach into the UK market, as well as to explore various partnerships in the physical space. Specializing in ready-to-eat meals that customers can conveniently heat at home, Calo offers diverse meal plans tailored to support various health objectives. According to founder Ahmed Al Rawi, the company has experienced nearly 100% revenue growth, underscored by the delivery of more than 10 million meals last year across Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain. While specific delivery figures for this year were not disclosed, Al Rawi indicated that growth is keeping pace with revenue increases. The impressive performance metrics, along with Calo's robust brand, technological infrastructure, and operational excellence, were key factors that persuaded AlJazira Capital to invest. Rawan AlRasheed, director of venture capital at AlJazira Capital, commented, "Calo represents a compelling opportunity at the intersection of healthtech, foodtech, and consumer subscription models." Calo's ambitions in the UK have already seen it acquire two meal delivery services, Fresh Fitness Food and Detox Kitchen, in the past year. Although Fresh Fitness Food did not secure funding, Detox Kitchen raised over $3.4 million through a mix of venture capital and equity crowdfunding. Al Rawi shared that extensive discussions with over 50 meal subscription businesses worldwide helped the company identify the UK as a prime expansion market, highlighting the strong cultural fit with the acquired companies. These acquisitions were strategically made to enhance Calo's operational capabilities while the startup focuses on elevating its technology and branding. Al Rawi confirmed that the integration of Calo’s systems with the UK platforms was completed in July without any layoffs, and the company has since been ramping up its marketing efforts in the region. Currently, Calo is able to deliver meals daily in London and two to three times a week in other parts of the UK. The ambitious founder has set a goal for Calo to multiply its revenue in the UK by ten over the next three years. However, the journey will not be without challenges, as Calo faces competition from established food delivery services like Just Eat and Deliveroo, as well as meal-box competitors such as Gusto and Wicked Kitchen. Meanwhile, Calo is also eyeing potential acquisitions of meal kit services globally and is expanding its physical presence with retail stores and kiosks. Additionally, a partnership with Armah Sports Company in Saudi Arabia aims to offer combined subscription services for meals and gym access.