Saudi foodtech Calo has made headlines with its recent announcement of raising $25 million in a Series B funding round, spearheaded by Nuwa Capital. This significant investment underscores the company’s innovative approach to personalized meal subscriptions and its aspiration to reshape the foodtech landscape in the region and beyond.
Calo, based in Saudi Arabia, successfully secured $25 million (SR94 million) in its Series B funding round. The round was prominently led by Nuwa Capital, with additional support from STV, Khwarizmi Ventures, and various regional family offices, signaling strong investor interest in the foodtech sector.
The startup has ambitious plans to increase the funding round to a total of $50 million, aiming for an additional $25 million raise scheduled for the first quarter of 2025. This move reflects the considerable investor confidence in the company’s model, especially given the oversubscription of the Series B round.
Calo’s Ambitious Vision
Calo was founded in late 2019 by Ahmed Alrawi, who later teamed up with Moayed Almoayed as co-founder. The company positions itself as the world’s fastest growing meal subscription service, boasting remarkable nine-figure annualized revenue and over 100 percent compound annual growth rate (CAGR) from 2020 to 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,” remarked Ahmed Alrawi, the Founder and CEO of Calo. His ambition is palpable: “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.”
Alrawi highlighted an intriguing observation, stating that the top 10 food brands globally generate $300 billion annually, yet none are addressing the health crisis effectively. “We bet that in the next 10 years, there will be a healthy brand that climbs to the top 10 list, and we aspire to be that brand having tech and innovation in our DNA from day one,” he added.
A Focus on Personalization and Growth
Calo’s meal plans are customized to meet individual fitness goals and dietary preferences, utilizing advanced technology to deliver over 10 million meals in 2024 alone. With the recent funding, the company plans to bolster its leadership in meal subscriptions across the GCC region by enhancing personalization through artificial intelligence and launching new product offerings.
Moreover, the company is looking into diversifying its business model. Calo has already initiated a retail line with five physical locations contributing to seven-figure revenues, and is targeting global expansion through mergers and acquisitions, with its first acquisition set to close in Q1 2025.
Additionally, to facilitate this rapid expansion phase, Calo will be hiring for key strategic leadership roles, including preparations for an Initial Public Offering (IPO) slated for 2027 in Saudi Arabia.
Investor Support and Market Potential
Previously, Calo attracted $26 million from prominent investors such as Vision Ventures, 500 Startups, Savour Ventures, and Nama Ventures, indicating a solid track record in securing funding. In addition to its operations in Saudi Arabia, Calo has expanded to other Gulf countries, including the UAE, Bahrain, Qatar, and Kuwait.
The global quick service restaurant market is anticipated to continue its high growth trajectory, currently valued at over $500 billion, but there’s a striking absence of clear leadership in the “healthy” food segment. Calo aims to fill this void with its unique approach and innovative solutions in the foodtech arena.