Online logistics collective Oto secures $8 million in Series A funding to streamline delivery for e-commerce retailers
In a significant development for the logistics industry, Oto, a Riyadh-based startup, has successfully raised an $8 million Series A round. The investment was led by Sanabil Investments, a subsidiary of the Public Investment Fund, with participation from Saudi's Sadu Capital, UAE's Iliad Partners, Jordan's Propeller, and US-based Soma Capital [1][5].
Oto, described as a shipping gateway, aims to empower online merchants by providing a platform that allows them to manage, ship, track, and analyse their shipping and storage activities from a single platform [4]. The company's mission is to streamline the logistics process for e-commerce businesses, and it achieves this by linking store owners with over 250 local and international shipping companies and ecommerce platforms [2].
The funding will be utilized to accelerate growth and geographic expansion, with plans to enter the UAE and Türkiye markets. The ultimate goal is to support over 10,000 merchants and double the company's reach and capabilities in the region [1].
Founded in 2019 by Mohammad AlRazaz and Muhammad Furkan Uzar, Oto offers integrations with various ecommerce and logistics platforms, including Shopify, WooCommerce, BigCommerce, OpenCart, Salla, Zid, Aramex, FedEx, DHL, Smsa, UPS, Zajil, Careem, and Yango [3]. The platform also allows merchants to manage and track their orders from a single place, further simplifying the process.
Oto currently provides plans starting from $53 (SAR 199) per month, with a free tier available as well. The startup has reported a year-over-year revenue growth and significant growth in terms of orders processed, serving over 10,000 local and international brands [3].
By leveraging the Series A investment, Oto aims to strengthen its position as a logistics backbone for e-commerce, enhancing its infrastructure and service offerings across new markets [1][5]. This investment is a testament to Oto's potential and its role in revolutionizing the logistics industry for e-commerce businesses.
[1] TechCrunch. (2022). Oto, a Saudi logistics startup, raises $8 million Series A to expand in the MENA region. [Online] Available at: https://techcrunch.com/2022/05/26/oto-a-saudi-logistics-startup-raises-8-million-series-a-to-expand-in-the-mena-region/
[2] Oto. (n.d.). Partners. [Online] Available at: https://oto.com/partners
[3] Oto. (n.d.). Pricing. [Online] Available at: https://oto.com/pricing
[4] Oto. (n.d.). About. [Online] Available at: https://oto.com/about
[5] Arab News. (2022). Saudi logistics startup Oto raises $8 million in Series A funding. [Online] Available at: https://www.arabnews.com/node/1946471/business-economy
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