Dubai-based logistics startup Fetchr has confirmed that it raised $15 million as part of its Series C Funding round, the company said in a statement on Monday.
In July, Bloomberg first reported that Fetcher raised $15 million in funding as part of a turnaround plan to save the courier app from collapsing, saying that the funding round was still waiting for the approval of its shareholders.
According to the statement, the company said that is looking to raise another $10 million in funding before the end of the year following approval of the new funding at its Extraordinary General Meeting (EGM) on 20 August 2020. It also added that the company plans to rebrand by the end of this year.
Fetchr has previously raised commitments from BECO Capital, Dubai-based Tamer Group, CMA CGM and its logistics arm CEVA Logistics. The statement said that the company’s investors are committed to supporting the company over the long term as it looks to reach break-even EBITDA by the end of 2020, after it had improved by 77 per cent during the pandemic.
Additionally, the company said it has plans to extend its operations to China, the US, UK and EU region, and that it is exploring strategic partnerships with global service providers and large retailers.
Founded in 2012, Fetcher offers first- and last-mile delivery and logistics services. The company operates in UAE, Bahrain, Saudi Arabia and Egypt.
“I’m pleased to note that the work done by Fetchr’s transformation team has placed it in a great position to take advantage of new opportunities as well as to meet new challenges. It took a lot of hard work and tough decisions, as we optimised operations, diversified revenue streams, reduced costs and charted a clear path to profitability to bring about the turnaround in the company’s prospects,” said interim CEO Mazen Mamlouk.
The retail industry has seen tremendous growth due to the Covid-19 pandemic. Major retailers in the GCC have seen an increase in online sales ranging from 50 per cent to 800 per cent and now 90 per cent of consumers in KSA and UAE are purchasing online, the statement added.
“Retail, e-commerce and individual customers can expect to see a competitively efficient and speedy operation that translates into lower costs and higher end consumer happiness. We have developed a great product mix for B2C, B2B and C2C clients and differentiate from traditional logistics companies by offering flexible cash solutions among other incentives,” said Hussein Wehbe, who is set to succeed Mamlouk as the new CEO.