Fetchr has raised $15 million in fresh funding from BECO Capital, Saudi Arabia’s Tamer Group and French shipping company CMA CGM SA. The startup is expanding to Saudi Arabia as part of a turnaround plan that saved the Dubai-based courier app from collapse.
The latest financing round could see pledges increase to as much as $25 million, according to documents seen by Bloomberg. Late last year, Fetchr warned its investors that its financial performance was diminishing and it had considered selling the business or filing for bankruptcy. The startup was able to raise $10 million in bridge finance. In turn, this diluted existing shareholders to almost zero, according to a letter to investors seen by Bloomberg in December.
Idriss Al Refai and Joy Ajlouny co-founded Fetchr in 2012. The startup helps local merchants and global brands build, launch and grow profitable e-commerce businesses across the Middle East. Fetchr’s smart delivery services offer delivery and logistics services to e-commerce firms.
Since the company’s downturn in 2019, it has brought in new management. The current interim CEO, Mazen Mamlouk, will soon pass the reins to Hussein Wehbe, former managing director of UPS in the Middle East. However, Mamlok will remain as an adviser with Fetchr. Additionally, Fetchr reduced the rate at which it burns cash and closed operations in Jordan, Bahrain and Oman, according to the latest documents. It also cut about 1,230 jobs.
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