– OTO, a logistics platform in the Middle East and North Africa, has secured SAR 30 million ($8 million) in a Series A funding round led by Sanabil Investments. The funds will be used to expand OTO’s presence in Saudi Arabia, UAE, and Turkey, and introduce new features targeting SMBs and enterprise online merchants.

– The platform offers a suite of technological solutions that streamline shipping processes for merchants by linking them with over 250 local and international shipping companies and e-commerce platforms. The company supports more than 10,000 brands and has doubled its revenue year-on-year, achieving significant growth in orders processed.

– The GCC and Turkish ecommerce markets are poised for substantial growth, with the GCC market projected to reach $50 billion by 2025 and the Turkish market expected to grow to $49.5 billion by 2029. Together, these markets are on track to exceed $150 billion by 2030, highlighting the region’s expanding digital commerce landscape.

OTO, a shipping gateway and logistics platform in the Middle East and North Africa, has secured SAR 30 million ($8 million) in a Series A funding round led by Sanabil Investments, a company wholly owned by the Public Investment Fund (PIF).

The funding round included participation from Sadu Capital, Iliad Partners, Propeller, and Soma Capital. Previously, OTO had raised SAR 12.3 million ($3.3 million) from VC funds and angel investors such as MEVP, Derayah Ventures, and 500 Global.

OTO plans to use the funds to expand its presence in Saudi Arabia, UAE, and Turkey. The company will introduce new features and enhancements targeting SMBs and enterprise online merchants, aiming to deliver faster and more efficient shipping experiences to customers.

The company provides a suite of technological solutions that allow merchants to manage, ship, track, and analyze their shipping and storage activities seamlessly. By linking merchants with over 250 local and international shipping companies and e-commerce platforms, OTO synchronizes and automates every aspect of the shipping process.

This integration streamlines operations, enhances efficiency, and offers a unified platform for all logistics needs. Merchants can connect their own shipping contracts to their account or buy shipping labels using pre-negotiated rates.

Mohammad AlRazaz, Co-Founder and CEO, OTO, said: “Securing this funding round is a testament to our team’s dedication and our commitment to transforming the shipping and logistics sector in line with Saudi Vision 2030. We are focused on delivering innovative solutions that enable merchants to streamline their operations and manage logistics with unmatched efficiency.”

A spokesperson from Sanabil Investments added: “The last few years have put a significant spotlight on the shipping industry and increased the need for smart shipping solutions. OTO has built a platform with a fully integrated set of functionalities to help companies of all shapes and sizes meet their logistics requirements. We are excited to partner with them to support their growth plans across the region.”

Furkan Uzar, CTO and Co-founder of OTO, said, “This funding propels us toward our vision of becoming the shipping gateway of the internet. By bridging the tech gap between sales channels and shipping providers, we can accelerate our growth and offer customers streamlined, automated shipping solutions.”

“The Gulf Cooperation Council (GCC) ecommerce market is poised for significant growth, with projections indicating it will reach $50 billion by 2025. This impressive expansion, driven primarily by Saudi Arabia and the UAE, boasts an average annual growth rate of 17.8%.

Simultaneously, the Turkish ecommerce market is expected to experience robust growth, with an annual increase of 11.58% from 2024 to 2029. By 2029, the market size is projected to hit $49.5 billion. Together, these dynamic markets are on track to exceed $150 billion by 2030, highlighting the region’s escalating digital commerce landscape.”