Saudi foodtech Calo has made headlines by successfully raising $25 million in its Series B funding round, led by Nuwa Capital. This significant financial backing underscores a growing investor interest in personalized meal subscription services, aiming to revolutionize how consumers in the region approach healthy eating.
Calo, the Saudi Arabia-based foodtech startup revolutionizing personalized meal subscriptions, announced it raised $25 million (SR94 million) in its Series B funding round.
Nuwa Capital led the funding round in Calo, which also saw participation from STV and Khwarizmi Ventures, along with various regional family offices, the company reported.
Calo also disclosed plans to extend the round to a total of $50 million, with an additional $25 million raise planned for Q1 2025.
Calo in Saudi Arabia
Investor confidence, demonstrated by the oversubscription of the Series B round, has led to this decision, the company said in a media release.
Calo was founded towards the end of 2019 by Ahmed Alrawi, who was soon joined by Moayed Almoayed as co-founder.
Calo claims to be the world’s fastest-growing meal subscription service, having recorded an unprecedented nine-figure annualized revenue, along with a remarkable 100% compound annual growth rate (CAGR) over the past five years (2020-2024).
“It’s been truly a privilege to be ‘making healthy easy’ over the past few years for hundreds of thousands of customers, but it’s still day one for us,” said Ahmed Al Rawi, Founder and CEO of Calo.
“Being in Saudi, we’re inspired to think big and be ambitious. There’s no reason why we can’t export innovation from the region to the rest of the world,” he expressed.
Al Rawi mentioned that the top ten food brands globally generate $300 billion annually, none of which adequately address health concerns.
“We bet that in the next ten years, there will be a healthy brand that climbs to the top ten list, and we aspire to be that brand, having tech and innovation in our DNA from day one,” he added.
Innovative Approach to Meal Personalization
The company’s personalized meal plans cater to individual fitness goals and dietary preferences, leveraging cutting-edge technology to deliver over 10 million meals in 2024 alone.
Following its Series B round, Calo aims to solidify its status as a leader in meal subscriptions within the GCC region, enhancing personalization through AI and rolling out new products.
Furthermore, Calo’s strategy includes expanding into adjacent business lines like retail, where it has already established five physical locations generating seven-figure revenues. The company is also exploring global expansion opportunities, with its first acquisition targeted to close in Q1 2025.
Future Growth and Market Potential
Calo is set to hire strategic leadership roles essential for navigating its accelerated growth phase and aims for an IPO journey planned for 2027 in Saudi Arabia.
Previously, Calo raised $26 million from various investors, including Vision Ventures, 500 Startups, Savour Ventures, and Nama Ventures, among others.
In addition to its operations in Saudi Arabia, Calo has expanded its reach to the UAE, Bahrain, Qatar, and Kuwait.
The global quick-service restaurant market continues to grow rapidly, now valued at over $500 billion, but remains devoid of a clear leader in the healthy category. With its innovative approach and robust funding, Calo is well-positioned to fill that gap and thrive in this evolving landscape.