GroDesto, an Algerian-based logistics platform has announced its successful raising of $1.4 million through a public offering from 106 frugal subscribers spread throughout the country to become a joint stock company.
The startup will use the funds to finance its logistics distribution platform, which consists of a mobile application and a website. The project, which was awarded the Label “Innovative Project” on August 12, 2021, by the National Labeling Committee of Startups, Innovative Projects, and Incubators, aims to breathe new life into consumer product distribution in Algeria.
This operation was established in accordance with the provisions of the Algerian Commerce Code, including the provisions relating to the constitution of companies by shares with a public call for savings, as introduced by Legislative Decree 93-08 of 25a vril 1993 and all its applications texts.
Mustapha Siaci, the founder and CEO of GroDesto, announced the results of the fundraising initiative on Thursday in Algiers, following the conclusion of the Constituent General Assembly of the new company “SPA GroDesto Innovation,” which was formed to develop a logistics platform for consumer goods distribution.
Siaci stated after this constitutive general meeting that GroDesto is the first Algerian company founded through a public call for investment to fund its logistics distribution platform in accordance with the regulations of the Algerian commercial code.
The Commission for the Organization and Supervision of Stock Market Operations approved the information notice submitted for the incorporation of the new company through a public offering (COSOB).
According to the announcement, between May 5 and August 28, 200,000 shares with a nominal value of one thousand dinars each were made available to the public.
Grodesto SPA is the first company formed by Public Appeal to Savings
“Grodesto SPA will be considered as the first company by shares to be formed by Public Appeal to Savings (29 years after the promulgation of the legislative decree completing the code of commerce) and the first Algerian startup to raise funds from the general public, through a transparent and regulatory process,” the CEO explained.
He also congratulated the shareholders and thanked all the shareholders and parties who contributed to the success of this first fundraising effort by an Algerian startup, noting that the participants at the general meeting unanimously approved the company’s bylaws, the composition of its board of directors, and the appointment of its auditor.
By 2023, the startup hopes to have created more than 50 direct jobs and more than 1,200 indirect jobs.
In addition, Cosob’s head of development, Kamel Taleb, stated that “the fundraising operation requested by Grodesto met all standards in terms of financial information openness, management, and governance.”