Egypt's Naqla raises $10.5M Pre-Series A
Egypt’s digital platform connecting truck owners with cargo companies Naqla has raised $10.5M to advance the digitization of Egypt’s freight networks amidst a global peek in on-demand delivery and inland logistics servicing.
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Cairo-based Logistics Tech startup and online trucking platform Naqla has successfully raised $10.5M in its latest funding round. The Pre-Series A round was led by major investors El Sewedy Capital Holding (SCH), Hassan Allam Holding (HAH), and the Sallam Family.
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. Since establishing the business in 2017, founders Sherif Taher and Samer Sallam have expanded Naqla 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.
With 3 Mega Deals by Turkey-based delivery network Getir, 1 Mega Deal by Egypt-based logistics startup and micro-crediting service provider Halan, and the highest funding round in Pakistan to date closed by delivery startup Airlift, the Transport & Logistics (T&L) sector across observed a 460% YoY increase in funding to cross the $1Bn mark in 2021. 2 months into Q2, the Transport & Logistics industry across MEAPT has crossed the $100M mark in funding with major rounds closed by UAE-based On-demand trucking platform TruKKer, UAE-based mobility SaaS solutions and last-mile delivery startup AHOY, as well as Egypt's on-demand logistics service provider Yalla Fel Sekka (YFS). Driven by Halan's $120M Mega Round, funding in the T&L space in Egypt was able to grow by more than 280% in 2021 as recorded in our Egypt 2022 Venture Investment Report the lion's share of the investments was funneled towards backing B2B and on-demand logistics solutions providers including digital freight marketplace Trella, Logistics Tech startups Flextock and Bosta, as well as Q-commerce startup Rabbit.
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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 – $13bn in Egypt and $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. In light of this platform-boosting fundraise, Sherif Taher, Co-Founder and Chief Executive Officer of Naqla stated,“We are now perfectly positioned to grow our digital logistics offering and market presence, bringing a much-needed technology infrastructure to the badly served Egyptian logistics and trucking industry, at a critical time in the country’s economic growth. 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.”
Naqla 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. The Egypt-based Logistics startup will utilize its newly acquired funds to advance technology and digitization, and position the company for growth and development in 2022. Farouk Kadous, Board Member at El Sewedy Capital, concluded, “We’re thrilled to join Naqla on their journey towards a destination of completely changing the infrastructure of logistics in the region. We have tremendous expertise in the infrastructure space, and this investment will increase the synergies between our different portfolio companies. We love the leadership team at Naqla and are not just betting on the market size, but on their grit and vision.”
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