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.
The company plans to use the fresh capital to expand into new markets like the U.K. and explore partnerships in physical retail spaces. Calo 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 the startup’s revenue grew by nearly 100% last year. Calo delivered over 10 million meals across Saudi Arabia, the UAE, Kuwait, Qatar, and Bahrain. While exact figures for this year were not provided, 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.
Calo has already taken steps to expand in the U.K., acquiring two meal delivery services last year: Fresh Fitness Food and Detox Kitchen. The latter had previously raised $3.4 million through venture-backed and equity crowdfunding rounds.
Al Rawi explained that Calo evaluated over 50 meal subscription businesses worldwide before deciding on the U.K. market. The acquisitions were strategic, as both companies aligned well with Calo’s culture and operational needs. The startup focused on integrating its technology and processes without laying off any employees, completing the transition in July.
Currently, Calo offers daily meal deliveries in London and serves other parts of the U.K. two to three times a week. The company aims to grow its U.K. revenue tenfold within the next three years. However, it will face competition from established players like Just Eat, Deliveroo, and meal-box services such as Gousto and Wicked Kitchen.
Beyond the U.K., Calo is exploring acquisitions of meal-kit services globally. The company is also expanding its physical presence with retail stores and kiosks in various regions. Additionally, Calo has partnered with Saudi gym chain Armah Sports Company to offer bundled meal and fitness subscriptions.