Saudi startup WeDeliver raises Dh8.8m for regional expansion
WeDeliver does not employ drivers or own warehouses; model aligned with cost-effective industry disruptors.
WeDeliver, a Saudi Arabia-based crowdsourced delivery technology start-up, on Wednesday said it has raised $2.4 million (Dh8.8 million) in a pre-seed round as it aims to take advantage of the pandemic-induced delivery boom and also expand to other countries in the region in the coming months.
WeDeliver uses artificial intelligence, machine learning, and a mobile app to connect businesses that have parcels to be delivered with freelancer drivers heading in the right direction. Using crowdsourced freelance drivers, and under-utilised warehouses for storage and hubs that include easy-to-find locations such as gas stations and local shops for collection and delivery reduces delivery costs for the market.
The company does not self-employ any drivers or own any warehouses itself and its business model is aligned to other cost-effective industry disruptors such as Uber and Air BnB.
This was the largest pre-seed round for a Saudi-based start-up and the third-largest for a start-up in the Middle East and North Africa (Mena) region.
The start-up oversubscribed its pre-seed round and is aiming to partner with strategic institutional and individual investors who can add value beyond capital and support the promising expansion plans.
Current partners include Saudi logistics company, Salasel Alemdad, VEST investment company, Palestine Paltel Telcom Group, the Mutasami family fund, Arcom Technologies, along with Angels from leading management consulting firms, members of the Riyadh Chamber of Entrepreneurship Organisation, and Kassim Legal.
The startup tripled its revenues in the last three months and achieved double-digit growth rates every month since it was launched in Riyadh last year shortly after the global pandemic lockdowns in April 2020.
“Our business is meeting the region’s needs for quick deliveries which surged during the pandemic. Our asset-light collaborative model is likely to disrupt intra-city logistics, enabling faster, more efficient, and low-cost delivery for businesses and online customers,” said Ahmad Ramahi, CEO and co-founder of WeDeliver.
Mohammad Abu Kwaik, chief technology officer and co-founder of WeDeliver, said: “With the new funds, we will improve the automation of our operations, in addition to building our data warehouse. There is a huge demand for technology skills in the Mena region. At least 45 per cent of our overall staff by the end of 2021 will be technology specialists.”
Nasser Almaawi, chief commercial officer and co-founder of WeDeliver, said: "We are pleased to support economic growth in the region by providing a new type of delivery service that is low-priced, reliable, easy-to-order, with tech-driven tracking, verified drivers, transparent pricing, and customer support.”
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