Middle Eastern food delivery startup Calo announced on Tuesday that it has raised $39 million in a Series B extension led by AlJazira Capital. The funding round exceeded its original $25 million raise in December by more than 1.5 times. Existing investors, including Nuwa Capital, STV, Khwarizmi Ventures, and Al Faisaliah Group, also participated.
Calo plans to use the new capital to expand into markets like the UK and explore partnerships in physical retail spaces. The company specializes in ready-to-eat meals that customers can heat up later, offering various meal plans tailored to different health goals.
Founder Ahmed Al Rawi revealed that Calo’s revenue grew by nearly 100% last year, with over 10 million meals delivered across Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain. While exact figures for this year were not disclosed, Al Rawi confirmed that deliveries are growing in line with revenue.
AlJazira Capital cited Calo’s strong brand, technology, and operational excellence as key reasons for its investment. Rawan AlRasheed, director of venture capital at AlJazira Capital, described Calo as a compelling opportunity at the intersection of healthtech, foodtech, and consumer subscription models.
The startup has already taken steps to enter the UK market, acquiring two meal delivery services last year: Fresh Fitness Food and Detox Kitchen. Al Rawi explained that after evaluating over 50 meal subscription businesses globally, the UK emerged as the ideal expansion market. The acquisitions provided Calo with established operational frameworks, allowing the company to focus on scaling technology and branding.
Calo spent much of the year integrating its systems with the UK platforms while retaining all existing staff. The integration was completed in July, and the company has since begun marketing efforts in the UK. Currently, Calo delivers meals daily in London and two to three times a week in other parts of the country. The company aims to grow its UK revenue tenfold within the next three years.
However, Calo faces stiff competition in the UK, including from food delivery giants like Just Eat and Deliveroo, as well as meal-box services such as Gusto and Wicked Kitchen.
Beyond the UK, Calo is exploring acquisitions of meal-kit services worldwide and expanding its physical presence through retail stores and kiosks. The company has also partnered with Saudi gym chain Armah Sports Company to offer bundled subscriptions for meals and fitness services.