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Egyptian multimillionaire businessmen Hassan Allam and Ahmed El Sewedy have backed Cairo-based trucking logistics startup Naqla to raise $10.5 million in its recently completed pre-Series-A round, as it moves to expand its operations in the North African country.
The round was backed by the Sallam family, a major Egyptian family firm with significant stakes in manufacturing, retail and real estate, as well as Allam and El Sewedy’s companies, El Sewedy Capital Holding and Hassan Allam Holding.
Egyptian entrepreneurs Sherif Taher and Samer Sallam established Naqla in 2017 with the aim of modernizing and expanding Egypt’s supply chain by automating orders between shippers and drivers. The firm links truck owners with cargo companies through its app-based trucking technology.
Its business model addresses Egypt’s historically underserved road freight sector, which has grown in importance since the onset of COVID-19-related supply-side constraints, as businesses seek efficiencies in inland transport from Egypt’s major entry and exit ports to maintain the flows of goods in their supply chains.
According to Sherif Taher, co-founder and CEO of Naqla, the startup’s $10.5-million capital infusion will be used to position it to extend its digital logistics offerings and market presence.
The investment will also be used to provide much-needed digital infrastructure to Egypt’s underserved logistics and transportation industry, allowing for the quick development of its operations and planned vertical expansion into other industries.
“We are now perfectly positioned to grow our digital logistics offering and market presence, bringing a much-needed technology infrastructure to the badly served Egyptian logistics and trucking industry, at a critical time in the country’s economic growth,” he said.
Naqla has transported 4.6 million tonnes of goods in more than 35 zones across Egypt since its inception over five years ago. It has linked more than 400 shipping and cargo businesses with 10,500 drivers.
