Food delivery service Calo scores $39 million in Series B extension as it sets eyes on the UK
Middle Eastern food delivery trailblazer Calo has announced a significant boost to its expansion plans, securing an impressive $39 million in a Series B extension round. Led by AlJazira Capital, this substantial investment, which is over 1.5 times its original $25 million raise in December, also saw strong participation from existing investors including Nuwa Capital, STV, Khwarizmi Ventures, and Al Faisaliah Group.
The fresh capital is earmarked for ambitious international growth, with a primary focus on the highly competitive UK market, alongside exploring strategic partnerships in physical retail spaces. This move signals Calo’s intent to solidify its position beyond its established Middle Eastern footprint.
Calo specializes in ready-to-eat meal plans tailored to diverse health goals, offering convenience and nutritional value to its customers. The company’s founder, Ahmed Al Rawi, revealed to TechCrunch that Calo’s revenue surged by “close to 100%” in the past year. In the previous year alone, Calo successfully delivered over 10 million meals across its core markets of Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain, demonstrating robust operational efficiency and strong market acceptance.
Rawan AlRasheed, Director of Venture Capital at AlJazira Capital, highlighted the strategic appeal of Calo, stating, “Calo represents a compelling opportunity at the intersection of healthtech, foodtech, and consumer subscription models.” This endorsement underscores the company’s innovative approach and its potential to disrupt multiple sectors simultaneously.
Pivotal to its UK expansion strategy, Calo last year acquired two established meal delivery services: Fresh Fitness Food and Detox Kitchen. While Fresh Fitness Food had not previously raised external capital, Detox Kitchen had secured over $3.4 million through a combination of venture and equity crowdfunding rounds, according to Crunchbase data.
Explaining the rationale behind these strategic acquisitions, Al Rawi told TechCrunch, “We spoke to over 50 meal subscription businesses worldwide, ranging from the U.S. to Asia, in 2023-24 to learn about what is an exciting market for us to expand to. We realized the UK was the right market for us to expand. We thought that both companies that we acquired had a great culture fit to work with Calo.” He further elaborated that the acquisitions were driven by the desire to leverage the operational expertise of these UK entities, allowing Calo to integrate and scale its advanced technology and branding layers seamlessly.
The integration of Calo’s technology and processes with the acquired UK platforms was completed in July, without any layoffs of existing personnel. Following this, the startup has initiated a gradual marketing push in the UK. Currently, Calo offers daily meal deliveries in London and two to three times a week in other parts of the UK, with an ambitious target of achieving a 10x increase in its UK revenue within the next three years.
Calo’s entry into the UK market will see it compete with established giants like Just Eat and Deliveroo, as well as specialized meal-box services such as Gousto and Wicked Kitchen, setting the stage for a dynamic competitive landscape.
Beyond the UK, Calo is actively exploring further global acquisitions of meal-kit services. The company also plans to expand its physical presence, including the launch of retail stores and kiosks in various regions. Demonstrating its innovative partnership model, Calo has also forged an alliance with Armah Sports Company, a leading gym chain in Saudi Arabia, to offer bundled Calo meal plans alongside gym subscriptions, diversifying its service offerings and reach.
