Egyptian logistics startup, Naqla, raises $10.5M in Pre-Series A Funding, to expand into other sectors
Egyptian logistics startup Naqla has raised $10.5 million in a pre-series A funding round to expand into other sectors. The round was led by prime investors El Sewedy Capital Holding (SCH), Hassan Allam Holding (HAH), and the Sallam Family.
Co-founded in 2017 by Sherif Taher, Naqla is transforming the transportation of goods by setting the standards to the world of trucking in Africa. Its goal is to digitize and expand the country’s supply chain by automating orders between shippers.
Naqla is a tech-enabled trucking platform and marketplace, that connects truck owners with cargo companies. The startup simplifies all trucking needs by handling shipment management through its two main apps. The startup provides an affordable, efficient, and transparent alternative for participants by simply using technology to connect independent carriers with cargo companies to generate the best rate and most efficient paths for both parties. Users on the platform fill a shipment detail and get an immediate quote, then they identify the best carrier to handle shipment management, all at the ease of a click.
The trucking industry has witnessed an increase in demand for its services with the growth of the country’s construction and consumer goods industry. Employees in the sector now make up 2% of the labor force or 3-4% of the GDP in Egypt and $45 billion across the MENA region.
Naqla serves historically underserved road freight routes in Egypt, areas that have faced supply constraints since the Covid pandemic. With merchants always on the lockout for further efficiencies in inland transport from Egypt’s major entry and exit ports to sustain the flows of goods with their supply chain.
The logistics startup has now transformed into a 165-person organization that is spread across all the major locations within the country while incorporating technology and instant pricing to provide an extraordinary experience for both shippers and truckers. It has so far delivered 4.6 million tonnes of cargo in over 35 zones across Egypt and has connected more than 400 shipping cargo companies with 10,500 truck drivers.
Naqla intends to use the funding raised to invest further in its commitment to advancing technology and digitization, positioning the company for growth and development in 2022.
Taher, on the fundraising, commented, “We are now perfectly positioned to grow our digital logistics offering and market presence, bringing a much-needed technology infrastructure for the badly served Egyptian logistics and trucking industry, at a critical time in the country’s economic growth. We thank our investors for their part of the Naqla journey – this investment will enable the rapid acceleration of our business and our planned vertical expansion into our new segments.”
Farouk Kadous, Board Member at El Sewedy Capital, added: “We are thrilled to join Naqla in their journey towards a destination of completely changing the infrastructure of logistics in the region. We have tremendous expertise in the infrastructure space, and this investment will increase the synergies between our different portfolio companies. We love the leadership team at Naqla and are not just betting on the market size, but on their grit and vision.”