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Calo Raises $25 Million to Expand Its Ready-To-Eat Meal Service Beyond the Middle East
Calo, a Saudi-based startup that offers personalized meal delivery services, has raised $25 million in a new funding round. The company plans to utilize this investment to expand its operations beyond the Middle East.
Founded by Faisal Al Rawi, Calo aims to revolutionize the food delivery space by providing customers with tailored meals based on their health and dietary needs. In an exclusive conversation with TechCrunch, Al Rawi highlighted that traditional meal delivery services often lack personalization, leading to a gap in the market for a more customized approach.
“We saw people were using generic meal recommendations without considering their specific requirements,” Al Rawi emphasized. “We realized there was no service that provided actual meals tailored to an individual’s needs.”
Calo addresses this issue by offering pre-cooked meals that cater to customers’ health goals, including weight loss, fitness, or dietary restrictions like veganism and gluten-free options. The startup also claims to have seen 30% more growth in its meal delivery services compared to an on-demand food aggregator.
To achieve its goal of expanding beyond the Middle East, Calo has strategically positioned itself with a central kitchen per city and uses vans for deliveries across cities with support from smaller vans and individual riders. This approach allows it to maintain its operational efficiency while ensuring timely delivery of meals to customers.
In addition to international expansion plans, the company is also focused on introducing deeper personalization options for users, enabling them to specify portion sizes and ingredient preferences in their orders. Furthermore, Calo is exploring new business models such as retail kiosks for grab-and-go meals and an on-demand delivery service.
The startup has achieved significant milestones, including reaching nine figures in annualized revenue and running a nearly break-even state. It also aims to reach profitability by next year and then go public.
Calo’s focus on expanding its services beyond the Middle East comes as it expects the UAE market to experience exponential growth in the coming years.
Source: techcrunch.com
