Egyptian Logistics Platform Naqla Raises $10.5 Million in Funding
Naqla, Egypt’s trucking technology platform and marketplace connecting truck owners with cargo companies, has raised $10.5 million in a Pre-Series A round. The round was led by major investors El Sewedy Capital Holding (SCH), Hassan Allam Holding (HAH), and the Sallam Family.
Naqla’s core mission is to modernize and expand Egypt’s supply chain through technology by automating orders between shippers and drivers through its two main apps.
Naqla has seen rapid growth into 35+ active zones, overseeing the movement and delivery of over 4.6 million tonnes of cargo since its establishment in 2017, and is currently working with more than 400 shippers and 10,500 drivers across Egypt.
Naqla’s business model addresses the historically underserved road freight sector in Egypt, which has grown in importance since the start of Covid-related supply-side constraints.
Businesses are continuously looking for further efficiencies in inland transport from Egypt’s major entry and exit ports to maintain the flows of goods within their supply chains.
The rapid growth of Egypt’s construction and consumer goods industry has meant demand for trucking continues to rise, with employees in the sector now making up 2% of the labour force, or 3-4% of GDP - $13bn in Egypt and $45bn across the MENA region.
Many of the 1.5 million trucks in Egypt are owned by individual drivers, whom Naqla aims to onboard onto its Carrier ecosystem, consisting of road assistance, finance, insurance, health care and maintenance.
Naqla will use proceeds of this investment to invest further in its commitment to advancing technology and digitization, positioning the company for growth and development in 2022.
Since establishing the business in 2017, founders Sherif Taher and Samer Sallam have expanded Naqla into a 165-person organization spread across all the major country locations while integrating several strands of technology and instant pricing to provide an exceptional first-class consumer experience for both shippers and truckers.
Sherif Taher, Co-Founder and Chief Executive Officer of Naqla, commenting on the fundraise, 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.”
Farouk Kadous, Board Member at El Sewedy Capital, added: “We’re thrilled to join Naqla on their journey towards a destination of completely changing the infrastructure of logistics in the region.
"We have tremendous expertise in the infrastructure space, and this investment will increase the synergies between our different portfolio companies. We love the leadership team at Naqla and are not just betting on the market size, but on their grit and vision.”