Calo raises $25 million Series B to expand its meal plan service beyond MENA

🥙 Saudi-HQ’d meal plan service Calo has raised $25 million in a Series B funding round as it looks to expand into new markets and offerings.

• Founded in Bahrain in 2019 by Ahmed Al Rawi and later joined by co-founder Moayed Almoayed, Calo operates in Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain.
• It offers personalised ready-to-eat meals, including breakfast, lunch, dinner, and snacks, with filters like high-protein, low-carb, and vegetarian options.

💰 Investor lowdown: The round was led by returning investors Nuwa Capital with participation from Khwarizmi Ventures and STV along with regional family offices.

• The oversubscribed round prompted Calo to extend its Series B to $50 million, with an additional $25 million planned for Q1 2025. Previous backers include Vision Ventures, 500 Startups, Savour Ventures, and Nama Ventures.

⚙️ Breaking it down

Calo reports customers order 30% more meals through its service compared to on-demand aggregators like Careem, attributing this to the combination of meal delivery convenience and health-focused offerings. Operating with one central kitchen per city and a fleet of 200 vans, Calo claims a CAGR of 100% over five years and annualised revenue exceeding $100 million in 2024.

Saudi Arabia contributes 70% of Calo's revenue, with the UAE at 15%, expected to grow significantly. Meal costs range from $7 to $9, with 10 million personalised meals delivered in 2024.

🐂 Bull case

Calo reached nine figures in annualised revenue this year and is near break-even, targeting profitability by next year ahead of a planned IPO.

Valued at $250 million, it raised funds to expand business models, cater to more segments, and enter new geographies.

🔮 Flashforward

Calo plans to strengthen its leadership in the GCC meal subscription market, expand into retail, and acquire a UK-based company in Q1 2025.

Future customisation will target niche segments, including muscle gain and health conditions like diabetes, IBS, and PCOS, leveraging its promise of personalised, convenient meals.

A Saudi IPO is planned for 2027.