OTO, a Saudi logistics platform, has announced its expansion into the UAE and Turkey following a successful SR30 million ($8 million) Series A funding round. The financing was led by Sanabil Investments, a wholly-owned entity of the Public Investment Fund, with additional contributions from Sadu Capital, Iliad Partners, Propeller, and Soma Capital, according to a press release.
This funding round follows a previous raise of SR12.3 million from venture capital funds and angel investors, including Middle East Venture Partners, Derayah Ventures, and 500 Global. The investment aligns with Saudi Arabia’s National Logistics Strategy, which aims to position the Kingdom among the top 10 countries globally in logistics performance by the end of the decade, in accordance with Vision 2030 objectives.
Mohammad Al-Razaz, co-founder and CEO of OTO, expressed his enthusiasm, stating: “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.”
OTO’s platform integrates with over 250 local and international shipping companies and e-commerce platforms, allowing merchants to manage, ship, track, and analyse their logistics activities. The platform also offers merchants the option to connect their own shipping contracts or purchase shipping labels at pre-negotiated rates.
“We are focused on delivering innovative solutions that enable merchants to streamline their operations and manage logistics with unmatched efficiency,” added Al-Razaz.
Investor confidence in OTO’s platform is bolstered by projections indicating Saudi Arabia’s e-commerce revenue is expected to grow at an annual rate of 13.5 percent through 2027, outpacing the global average growth rate of 11.2 percent, according to Agility Logistics.
The platform plans to utilise this funding to enhance its presence in Saudi Arabia, the UAE, and Turkey by adding new features and focusing on small and medium-sized businesses and e-commerce merchants. The Turkish e-commerce market is projected to grow at an annual rate of 11.58 percent from 2024 to 2029, reaching $49.5 billion by 2029.
A spokesperson from Sanabil Investments commented: “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.”
OTO serves over 10,000 local and international brands and has seen its revenue double along with a notable increase in orders processed year-over-year. Furkan Uzar, chief technology officer and co-founder of OTO, remarked that this funding propels the company towards its 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,” Uzar added.
