Calo has raised $25 million to expand its meal planning operations across the Middle East

A business built around ready-to-eat foods has taken off in the Middle East Refusal an injection of greater capital if seen to expand both what it can provide its customers with time and to brings its growing range of hot-to-eat foods.

The food supply market in the Middle East will take a hit $11.2 billion by 2030according to the report from MarkNtel Advisors published last year. Food conglomerates such as Careem, Deliveroo and Talabat have built huge businesses by banking on the habits of busy professionals to order food instead of making their own food – highly recommended. and the COVID-19 pandemic.

Riyadh-based Calo differentiates itself by offering customized subscriptions for specific areas such as weight loss, protein intake, or nutrition – targeting customers who care about what they eat, not where their food will arrive.

The startup is planning to lean on changing diets to suit individual parameters and dietary needs, such as artificial diets for those who want to gain muscle mass, or suffer from diabetes, IBS (Irritable bowel syndrome), or PCOS (polycystic ovary syndrome). Calo’s theory is that people who fall into these categories pay more for food that meets their needs.

The company is so confident it’s on to something that it’s also in the process of acquiring an unspecified food chain in the UK to expand its footprint outside the Middle East next year – and is keen to go global.

To fund the new venture, Calo raised $25 million in Series B funding led by Nuwa Capital with participation from Khwarizm Ventures and STV. Most likely, all of these investors are making returns.

Calo is now worth about $250 million, according to multiple sources TechCrunch spoke to.

The startup, which operates in Saudi Arabia, the UAE, Kuwait, Qatar and Bahrain, allows users to choose ready-to-eat meals, including breakfast, lunch, dinner, and snacks – offering food filters such as healthy, nutritious , very low carb, and vegetarian. Users can change their meals and plans and skip days.

This method has grown a lot in this area: this year Calo says he gave 10 million meals, and the average price of a meal is from $7 to $9.

Beyond the Series B round, Calo said it aims to close a $25 million round by Q1 2025 and has a goal of going public in the next few years. So this could be his last investment before the company names in Saudi Arabia. (With Series B closed, Calo has raised $51 million in multiple rounds.)

“It’s a strong idea to offer ready-to-eat food that’s healthy, nutritious, and tailored to your needs,” Khaled Talhouni, managing partner at Nuwa Capital, told TechCrunch by phone. “Whether you want to build muscle or lose weight, Calo helps you change your diet, and we’re excited about that idea.”

“The GCC (Gulf Cooperation Council) market has a tendency to order food. This is why companies like Talabat and Deliveroo are doing well. Also, Calo’s model, which is like a lot of milk, puts them in a good position,” he added.

Calo was launched in Bahrain by Ahmed Al Rawi in 2019. Before that, Al Rawi built another platform for people to book slots and join ongoing games. Later, he advised startups in New York before starting Calo.

“Before I started the startup, I thought there wasn’t much to be done in food delivery like startups like Careem were before. But I realized that a certain group of customers wanted customized meals with calories or ingredients, and the host didn’t offer this customization,” Al Rawi told TechCrunch over the phone. .

He said that services were there to give food recommendations based on a person’s height, weight, age, gender, and activities, but they did not provide real food, which was not suitable for busy professionals – which is why Al Rawi sees an additional opportunity. food service preferences.

According to Calo, people are buying 30% more food for his work compared to the food that is needed (like Careem). It credits this effort for combining food delivery and saving its customers the trouble of finding the right food to meet their health goals.

The company operates one central kitchen in each city, using vans to deliver goods within cities with the help of smaller vans and passengers each. Per Al Rawi, Calo currently has 200 vans operating in the Middle East.

Customers receive their meals frozen, which they can reheat in the microwave or use a pan on their hob. The founders said they can keep their ops fast and independent by not having too many delivery points and by sticking to planned workflows.

Future Roadmap

In addition to opening the new sections mentioned above, Calo is planning to introduce more in-depth customization to users – where, for example, they can specify the exact amount of protein, carbs, or fat they want in the food, or remove it. a combination.

The startup is also testing new business models, such as retail kiosks for eat-and-go locations like corporate offices, as well as on-demand delivery services.

Currently, Saudi Arabia represents 70% of Calo’s revenue, with the UAE coming in second at 15%. However, Al Rawi told us that he expects the UAE to grow significantly in the coming years.

This year Calo hit nine figures in annual revenue and is on a roll. The company wants to be profitable by next year, before going public.

“Because we make a lot of money, we didn’t need to make money and grow physically. But we saw a new opportunity for growth. So we got the money to expand our business, take care of more sectors, and open new locations that we serve,” added Al Rawi.