FundingLogistics

Egyptian logistics startup Naqla closes US$10.5M pre-series A round for expansion

EGYPT – Naqla, Egypt’s trucking technology platform and marketplace connecting truck owners with cargo companies, has closed US$10.5 million in a pre-series A round to expand its services.

The round was led by major investors El Sewedy Capital Holding (SCH), Hassan Allam Holding (HAH), and the Sallam Family.

The startup will use the proceeds of this investment to invest further in its commitment to advancing technology and digitization, positioning the company for growth and development in 2022.

Naqla’s core mission is to modernize and expand Egypt’s supply chain through technology by automating orders between shippers and drivers through its two main apps.

The company has seen rapid growth into 35+ active zones, overseeing the movement and delivery of over 4.6 million tonnes of cargo since its establishment in 2017, and is currently working with more than 400 shippers and 10,500 drivers across Egypt.

We thank our investors for their part on the Naqla journey – this investment will enable rapid acceleration of our business and our planned vertical expansion into our new segments,” said Sherif Taher, Co-Founder, and CEO of Naqla.

We’re thrilled to join Naqla on their journey towards a destination of completely changing the infrastructure of logistics in the region,” said Farouk Kadous, Board Member at El Sewedy Capital.

The startup’s business model addresses the historically underserved road freight sector in Egypt, which has grown in importance since the start of Covid-related supply-side constraints.

Businesses are continuously looking for further efficiencies in inland transport from Egypt’s major entry and exit ports to maintain the flows of goods within their supply chains.

The rapid growth of Egypt’s construction and consumer goods industry has meant demand for trucking continues to rise, with employees in the sector now making up 2% of the labor force, or 3-4% of GDP – US$13bn in Egypt and US$45bn across the MENA region.

Many of the 1.5 million trucks in Egypt are owned by individual drivers, whom Naqla aims to onboard onto its Carrier ecosystem, consisting of road assistance, finance, insurance, health care, and maintenance.

The startup has since expanded into a 165-person organization spread across all the major country locations while integrating several strands of technology and instant pricing to provide an exceptional first-class consumer experience for both shippers and truckers.

Nichole Manhire

Is the media and brand manager at GFA News. She works very closely with editors and podcasters that contribute to telling the African business success story. For marketing and advertising send Nichole an email: nichole@getfundedafrica.com

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