Logistics Tech Startup Naqla Nets $10.5M To Modernize Egypt’s Supply Chain
The logistics tech startup Naqla gathers $10.5M to make Egypt’s supply chain efficient.
The market for freight management systems is increasing at an exponential rate. As per the market research by MarketsAndMarkets.com, the value of the logistics software market is expected to reach $17.45 billion by 2023. And by 2027, the estimated cost of this market will be $ 77,770.
But in the Middle East and Africa, the freight or trucking industry still works in an old-fashioned way. Such as management of shipments via phone calls or emails. But in Egypt, the landscape is transforming. As a large number of freight and logistics startups are popping up. One such startup is Naqla which is an online trucking and logistics platform and has successfully raised $10.5M in its latest round of funding.
This Pre-Series A round was led by some prominent investors like EL Sewedy Capital Holding, Hassan Allam Holding, and the Sallam Family.
Founded in 2017, Samer Sallam and Sherif Taher. The core mission of this startup is to modernize and expand Egypt’s supply chain via technology by automating orders between shippers and drivers via its main apps. It provides a more affordable and efficient mode of work, both in terms of rates and the best routes. Other than this, the app streamlines the shipping process from start to end, covering everything from automating, pick-up, and delivery to payment and all documentation. Also, through its carrier ecosystem the startup onboards drivers, offers road assistance, insurance, finance, healthcare, and maintenance
With all these services, Naqla has witnessed explosive growth with expansion in 35+ active zones, with the inclusion of overseeing the movement and delivery of over 4.6 million tonnes of cargo. But Naqla is not the first startup in Egypt to be working in logistics and receiving huge funding. This year another startup Freterium raised $4M for its trucking software.
Consider this or not but now due to rapid growth in Egypt’s consumer goods industry and construction the demand for trucking continuous to rise with employees in the sector making 2% of the labor force or making 3-4% of the GDP. This has also surged the demand for other software development like warehouse management etc.
Sherif Taher, Co-Founder and Chief Executive Officer of Naqla, commenting on the fundraise and startup said: “We are now perfectly positioned to grow our digital logistics offering and market presence, bringing a much-needed technology infrastructure to 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 on the Naqla journey – this investment will enable rapid acceleration of our business and our planned vertical expansion into our new segments.”