Fetchr’s interim CEO Mazen Mamlouk, announced in a statement that the logistics startup has secured $15million in fresh funds. This round received commitments from Beco’s Capital, Suadi-based Tamer Group, and French shipping company CMA CGM.
It plans to use the latest funds to expand its business in Saudi Arabia. It is one of the six companies that won a parcel delivery license by Saudi’s Communications and Information Technology Commission (CITC). Fetchr is the only company to have received a license for both domestic and international deliveries.
Since raising $10 million in emergency funding late last year to avoid its bankruptcy, Fetchr, the report said, has cut about 1,230 jobs and exited Jordan, Bahrain, and Oman. The new management of the company has helped the company reduce its burn rate.
Started in 2012 by Idriss Al Rifai and Joy Ajlouny, Fetchr wanted to solve the no-address problem of emerging markets by delivering couriers using the customer’s phone as a GPS location. Initially, it followed an Uber-like model relying on freelancers to deliver packages to customers on its behalf but eventually moved to own a fleet with its own drivers becoming a courier company with tech.
Having raised over $50 million (before raising the money to avoid bankruptcy in December 2019) including $41 million Series B (which was one of the largest rounds for a Middle Eastern startup at the time), it used to be billed as one of hottest startups in the region. It’s Series B had reportedly valued the company at close to $300 million. But the $10 million emergency financing resulted in the value of its existing shareholders dilute to almost zero.