Delivery company says it will raise a further $10mln by the end of 2020 after a boost from the surging on-demand delivery market
Dubai-based courier and delivery company Fetchr has raised $15 million in Series C funding and expects to raise a further $10 million by the end of the year.
Investors including BECO Capital, Tamer Group, CMA CGM and its logistics arm CEVA Logistics have committed to support the company long-term, Fetchr said, as it plans ambitious growth.
Tamer Group previously took part in the 2018 funding round of funding, with CMA CGM joining in early 2019.
“The support of these strategic investors will enable Fetchr to grow its top-line, diversify its revenues and expand its operational footprint.
“They have backed the company during its painstaking transformation period and will be key partners in the company’s future,” Fetchr said in a statement.
Global expansion plans
“Investors are confident of Fetchr’s credible plan to reach break-even earnings before interest, taxes, depreciation and amortization (EBITDA) by the latter part of 2020, after a 77 percent improvement in group EBITDA that has been achieved already.
“They see value in its revenue diversification strategy for different product lines. In addition, growth plans for taking the company global and reach China, the US, UK and EU region, are expected to improve financial results and valuation,” it said.
Fetchr, which is currently operating in the UAE, Saudi Arabia and Egypt, said prospects have been boosted by the surge in the on-demand delivery sector caused by COVID-19 movement restrictions, that has since become a lasting shift in consumer behaviour.
“Post COVID-19, 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 company said.
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