OTO, the leading shipping gateway and logistics platform in the Middle East and North Africa, has successfully raised SAR 30 million ($8m) in a Series A funding round, led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF), with participation from Sadu Capital, Iliad Partners, Propeller, and Soma Capital. Previously, OTO had raised SAR 12.3 million ($3.3m) from VC funds and angel investors including MEVP, Derayah Ventures and 500 Global.
OTO plans to utilize the funds to expand and strengthen its presence in Saudi Arabia, UAE, and Turkey. It will introduce new features and enhancements on its platform targeting SMBs and Enterprise online merchants, enabling it to further deliver faster, and more efficient shipping experiences to their customers.
OTO provides a powerful suite of technological solutions that enable merchants to effortlessly manage, ship, track, and analyze their shipping and storage activities. By connecting merchants directly with over 250 local and international shipping companies and e-commerce platforms, OTO synchronizes and automates every aspect of the shipping process. This integration streamlines operations, enhances efficiency, and offers a unified platform for all logistics needs. Merchants can either link their own shipping contracts to their OTO account or purchase shipping labels directly using OTO’s competitively pre-negotiated rates.
Mohammad AlRazaz, Co-Founder and CEO, OTO, said: “Securing this funding round is a testament to our team’s dedication and our commitment to transforming the shipping and logistics sector in line with Saudi Vision 2030. We are focused on delivering innovative solutions that enable merchants to streamline their operations and manage logistics with unmatched efficiency.”
A spokesperson from Sanabil Investments added: “The last few years has put a significant spotlight on the shipping industry and increased the need for smart shipping solutions. OTO has built a platform with a fully integrated set of functionalities to help companies of all shapes and sizes meet their logistics requirements. We are excited to partner with them to support their growth plans across the region.”
OTO has grown its client base and currently supports more than 10,000 local and international brands on their platform. On a year-on-year basis, the company has doubled its revenue and achieved significant growth in orders processed.
Furkan Uzar, CTO and Co-founder of OTO, stated, “This funding propels us toward our vision of becoming the shipping gateway of the internet. By bridging the tech gap between sales channels and shipping providers, we can accelerate our growth and offer customers streamlined, automated shipping solutions.”
The Gulf Cooperation Council (GCC) ecommerce market is set for remarkable growth, with projections estimating it will reach $50 billion by 2025. This impressive expansion, led primarily by Saudi Arabia and the UAE, features an average annual growth rate of 17.8%. Concurrently, the Turkish ecommerce market is expected to see strong growth, with an annual increase of 11.58% from 2024 to 2029, reaching a market size of $49.5 billion by 2029. Collectively, these vibrant markets are on course to surpass $150 billion by 2030, underscoring the region’s rapidly advancing digital commerce landscape.
About OTO
Founded in late 2019 by Mohammad AlRazaz and Furkan Uzar in Saudi Arabia, OTO is a logistics technology company specializing in simplifying order shipping, management, tracking, returns, and analysis through a single integrated platform that combines more than six technological systems. OTO launched its services in March 2020 in Saudi Arabia and has recently expanded to Turkey and the UAE, offering comprehensive shipping services with over 250 fully integrated shipping companies. This expansion helps omnichannel retailers and ecommerce brands enhance customer experiences and streamline their shipping management operations.
For more information about OTO, please visit https://tryoto.com/
About Sanabil Investments
Sanabil is a financial investment company, wholly owned by the Public Investment Fund (PIF), that commits more than USD 3 billion in capital per annum into global private investments that include VC/Growth. Sanabil is a dynamic, nimble, and highly experienced team of investment professionals. Sanabil provides partners with patient capital, the ability to invest across multiple funding rounds, and access to the region. At Sanabil, we invest in great ideas, great minds, and great companies.
For more information about Sanabil Investments, please visit https://www.sanabil.com
