Calo, a startup specializing in personalized ready-to-eat meals, has secured $25 million in Series B funding to accelerate its regional and global expansion. Based in Riyadh, the company plans to extend its services beyond the Middle East, including a strategic acquisition of a U.K.-based food startup. With the meal delivery market in the Middle East projected to reach $11.2 billion by 2030, Calo aims to capitalize on the growing demand for customized, health-focused meal options.
Calo’s latest funding round was led by Nuwa Capital, with participation from returning investors Khwarizmi Ventures and STV. This injection values the company at approximately $250 million. To date, Calo has raised a total of $51 million and is also exploring an additional $25 million extension round by early 2025. Founder Ahmed Al Rawi hinted that this might be the company’s final private funding round before going public, likely in Saudi Arabia.
Launched in Bahrain in 2019, Calo differentiates itself by offering meal subscriptions tailored to specific dietary goals, including weight loss, high protein intake, and balanced nutrition. The company is now exploring further customization to cater to users with unique dietary needs, such as those managing diabetes, IBS, or PCOS. Customers can select and personalize their meal plans through an app, covering breakfast, lunch, dinner, and snacks, with options like low-carb and vegetarian meals.
Operating in Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain, Calo has served 10 million meals this year alone, with meal prices averaging between $7 and $9. Its operational model relies on centralized kitchens and scheduled bulk deliveries, supported by a fleet of 200 vans, ensuring efficiency and freshness. Meals are delivered chilled, ready for reheating.
Calo’s founder, Ahmed Al Rawi, identified a gap in the market for personalized, ready-to-eat meals while advising startups in New York. Recognizing the needs of busy professionals who prioritize health and convenience, he launched Calo to bridge the gap between meal recommendations and actual meal delivery.
In addition to geographic expansion, the startup is piloting new business models, including grab-and-go kiosks in corporate offices and an on-demand delivery service. Deeper meal customization options, such as adjusting macronutrient ratios or excluding specific ingredients, are also in development.
Saudi Arabia accounts for 70% of Calo’s revenue, with the UAE contributing 15%. The company expects the latter to grow significantly as it scales. Having achieved nine-figure annualized revenue and operating near break-even, Calo aims to reach profitability in 2024, setting the stage for a public listing.
Nuwa Capital’s Managing Partner Khaled Talhouni emphasized the appeal of Calo’s personalized meal delivery model, noting its strong fit within the GCC’s thriving food delivery market. Calo credits its success to its ability to combine convenience with health-conscious meal options, leading to a 30% higher order rate compared to traditional food aggregators.
With its eyes set on global expansion, deeper personalization, and innovative service models, Calo is positioning itself as a leader in the evolving meal delivery space.
Featured image courtesy of TechCrunch
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