Calo Secures $3.9B in Series B Funding, Eyes UK Expansion

Calo, a prominent food delivery service company, has successfully secured 3900 million USD in its Series B expansion funding round. This significant investment underscores the growing demand for efficient and reliable food delivery services, particularly in the wake of the global pandemic, which has accelerated the shift towards online food ordering and delivery.

The funding round was led by AlJazira Capital, with participation from existing investors Nuwa Capital, STV, Khwarizmi Ventures, and Al Faisaliah Group. This investment is more than 1.5 times the amount raised in the company's initial B round funding in December 2022, which was 2500 million USD. The company plans to utilize these funds to expand into new markets, including the United Kingdom, and explore various collaborations in the physical domain.

Calo specializes in providing ready-to-eat meals that customers can heat up later. The company offers a variety of meal plans tailored to different health goals. The founder revealed that the company's revenue has grown by nearly 100%. In 2022, Calo delivered over 100 million meals across Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, and Bahrain. Although specific data for this year has not been provided, it is noted that the delivery volume and revenue have grown in tandem.

These achievements, along with the company's brand influence, technological prowess, and exceptional operational capabilities, have prompted AlJazira Capital to invest in this Saudi-based company. The investment manager at AlJazira Capital highlighted Calo's attractive opportunities in the intersection of health tech, food tech, and consumer subscription models.

Calo is also actively expanding into the UK market, having acquired two food delivery service companies last year: Fresh Fitness Food and Detox Kitchen. These acquisitions are part of Calo's strategy to integrate its technology and processes with these platforms, which have already streamlined their operational aspects. The company aims to significantly increase its revenue in the UK market over the next three years.

Calo's expansion into the UK will face competition from established food delivery giants such as Just Eat and Deliveroo, as well as meal kit services like Gusto and Wicked Kitchen. Despite this, Calo is also exploring acquisitions of meal kit service companies globally and expanding its physical presence by opening retail stores and kiosks in various regions. Additionally, Calo has partnered with Armah Sports, a fitness chain in Saudi Arabia, to offer bundled services that include Calo meal subscriptions and gym memberships.