Riyadh-headquartered logistics startup Oto has raised $8 million in a Series A round led by PIF-owned Sanabil Investments, it announced in a statement on Monday. The round was also joined by Saudi’s Sadu Capital, UAE’s Iliad Partners, Jordan’s Propeller, and US-based Soma Capital. The round takes Oto’s total financing to over $11 million.
Founded in 2019 by Mohammad AlRazaz and Muhammad Furkan Uzar, Oto dubs itself as a shipping gateway that enables online merchants to manage, ship, track, and analyze their shipping and storage activities, from one platform. The startup links online store owners with more than 250 local and international shipping companies and ecommerce platforms to automate every aspect of the shipping process.
The online store owners have to manage and ship their orders using different providers which generally means that they have to use different dashboards to manage all of it. Oto streamlines all of that through its platform, allowing the merchants to ship, manage and track their orders from a single place.
Some of the ecommerce and logistics platforms it offers integrations for include Shopify, WooCommerce, BigCommerce, OpenCart, Salla, Zid, Aramex, FedEx, DHL, Smsa, UPS, Zajil, Careem, and Yango.
The merchants have the option of connecting their own shipping contracts to their Oto account or buy them from Oto, which has 20 local and international shipping companies as partners, offering discounted rates to its merchants.
The startup currently offers plans starting from $53 (SAR 199) per month and has a free tier as well.
It claims to be serving over 10,000 local and international brands through its platform and said that it has doubled its revenue on a year-over-year basis and experienced significant growth in terms of orders processed.
Mohammad AlRazaz, the co-founder and CEO of Oto, commenting on the investment, 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, said, “The last few years have 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.”
The Saudi startup plans to use the fund to further strengthen its presence in Saudi Arabia, UAE, and Turkey. It also aims to introduce enhancements on its platform to help online merchants ship faster and offer better shipping experience to their customers.
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