- Saudi Arabia-based logistics startup RedBox has raised $5 million in a pre-Series A investment round, led by RAAF Holding Company and Mad'a Investments, with the participation of angel investors.
- Founded in 2019 by Thamer Altuwaiyan, RedBox allows customers to choose the nearest smart locker to collect their shipments through its smart lockers available in more than 18 cities around the KSA.
- This investment will support RedBox’s plans to develop its solutions and improve the customer experience, as well as expand into other GCC markets.
RedBox, a Smart Parcel Lockers Company, closed a pre-series A investment round of $5 million (about 19 million Saudi Riyals), led by RAAF Holding Company and Mad'a Investments, with the participation of angel investors.
RedBox provides last-mile services in the logistics sector through its network of Smart Lockers stations.
Dr Thamer Altuwaiyan, Co-Founder and CEO of RedBox stated, "This investment will support the achievement of the company's strategic goals in developing its solutions and improving the customer experience. We thank our customers for their confidence in our services, we thank our e-commerce businesses and logistic companies for their trust in our network, and we also thank our investors for their trust in the company and its vision of the digital transformation of the sector.”
Altuwaiyan added that RedBox provides its services of last-mile solutions to its partners from local and global logistic companies, at a competitive price compared to traditional delivery. The number of e-commerce businesses that currently offer RedBox service has reached more than 10,000 businesses within the Kingdom of Saudi Arabia, with a growth rate of 500% over the previous year.
The company also stated that it had obtained debt facilities from local banks to finance its plans for geographical expansion to cover all regions of the Kingdom and to increase the number of its stations to 800 by the end of this year.
Altuwaiyan pointed out that RedBox has recently expanded to the market of Qatar and Bahrain. The company also plans to be present soon in other GCC countries, starting from the United Arab Emirates, then Kuwait and Oman.
Ali AlOthaim, President of RAAF Holding Company, said: “The company’s decision to invest in this round came from the reality of the importance of the logistics sector as one of the main sectors of the Vision 2030, and the growing logistics market in the Kingdom, which is estimated at $22.95 billion, and its growth rate is steadily increasing annually by 7.35% until 2024. In addition to the Kingdom’s endeavour to invest in the transport and logistics sector, enhance innovation processes and the technological capacity of the sector, and build all the components that qualify it to transform into a global logistics centre and a leading logistics hub in the region.
RedBox is a Saudi company established in 2019 to provide smart solutions for last-mile services through its smart lockers available in more than 18 cities around the Kingdom. The service allows customers to choose the nearest smart locker to collect their shipments safely from the lockers within 48 hours. It also offers COD and instant return services.
Also, the "RedBox Express" service was recently launched, which allows sending shipments between cities in Saudi Arabia. In addition, "Smart Mailroom" services are provided for private companies, residential complexes and government buildings, which allow sending and receiving documents and parcels in an easy and secure manner, in line with today's digital transformation.