On-demand, local food delivery leader Calo recently announced a $39 million Series B extension. AlJazeera Capital spearheaded this extraordinary funding round. This funding round represents a substantial leap from the initial $25 million raised last December. It currently stands for over 1.5 times that amount. This capital infusion will allow Calo to increase production capabilities and improve their market penetration strategies, with a specific focus on the UK market.
Over the last year, Calo has made remarkable strides across the Middle East. They are now experiencing success serving 10 million meals already delivered across Saudi Arabia, UAE, Kuwait, Qatar and Bahrain. During this time, the company has exploded—with its annual revenue up almost 100%. Calo’s high caliber performance has them poised to go the distance. The business is targeting ten times its current revenue in the UK over the next three years.
Calo’s main focus is on delivering ready-to-eat meals that customers can easily heat up at home. To bolster its presence in the UK, Calo has acquired two local meal delivery services: Fresh Fitness Food and Detox Kitchen. Throughout 2023, the company concentrated on integrating its technology and operational processes with these platforms, successfully completing this task in July without any layoffs among existing personnel.
Since the acquisition, Calo has started a limited marketing blitz in the UK. The service provides fresh, healthy meals every day across London. Plus, it provides deliveries to the rest of the UK two to three days a week. The organization intends to use this investment to grow into new geographies. Additionally, it seeks to understand how different partnerships can function in these physical spaces.
Calo’s founder, Ahmed Al Rawi, underlined the company’s intention to expand within the UK market. He mentioned that Calo wants to purchase various meal kit services internationally and that’s part of their strategic long-term direction.
“Calo represents a compelling opportunity at the intersection of healthtech, foodtech, and consumer subscription models.” – Rawan AlRasheed
Here’s the competitive landscape that Calo envisions. It’s on a mission to rival traditional food delivery services like Just Eat and Deliveroo, as well as meal box companies including Gusto and Wicked Kitchen. Calo is currently looking for opportunities to expand. In 2023-24 alone, they’ve talked to more than 50 private meal subscription companies across the globe, including many in the U.S. and Asia.
As the competitive environment for food delivery apps shifts, so do consumers’ wants and needs toward easy, healthy options. Calo’s novel approach to melding technology with meal delivery places it firmly in this rapidly growing sector.