Logistics startup Cargoz raises undisclosed bridge round to facilitate on-demand storage solutions for SMEs in Saudi Arabia.
Cargoz, a UAE-based logistics startup, has successfully raised a bridge funding round to support its expansion into Saudi Arabia. The undisclosed funding, secured from investors such as Nama Ventures, RAZ Group, and angel investors from the UAE and KSA logistics industries, will enable Cargoz to further develop its innovative platform and provide on-demand warehousing solutions for small and medium-sized enterprises (SMEs).
Cargoz: Revolutionizing on-demand warehousing and storage
According to the company, in the wake of the Covid-19 pandemic, SMEs have experienced significant logistical challenges, leading to a shift in their approach to warehousing and storage solutions. Instead of committing to long-term leases and costly storage contracts, SMEs are now seeking short-term storage space with flexible billing options, paying only for the space they utilize. Conversely, numerous warehousing owners and operators possess excess capacity that remains unutilized. Cargoz addresses this gap by connecting SMEs with surplus warehousing capacity, akin to the Airbnb model, through its user-friendly platform.
Meeting the growing demand for on-demand storage solutions
Cargoz, founded in January 2022 by Premlal Pullisserry (CEO) and Lijo Antony (CTO), leverages the extensive expertise of its founders in warehousing, logistics, and software development. With over 10 years of experience in the GCC’s logistics industry, Pullisserry brings an unparalleled understanding of the pain points and challenges faced by businesses in this sector. Antony, with more than 14 years of software development experience, excels in creating cutting-edge technology products.
Since securing its pre-Seed funding, Cargoz has achieved remarkable growth in the past 8-9 months, indicating that it is tackling a longstanding problem in the industry. The bridge funding round will further propel Cargoz’s expansion in the UAE and facilitate its soft launch in Riyadh by early Q3, 2023, the company claimed.
Supporting founders with a vision
“Nothing makes us more excited at Nama Ventures than to see founders that are as complementary as Premlal and Lijo, I mean Premlal breaths logistics, his depth of the space and his understanding of the pains in the space are unparalleled, Lijo, on the other hand, is a coder’s coder, he is very well versed in tech space and knows how to build tech products” said Mohammed Alzubi, founder and managing partner of Nama Ventures, “From the first ten minutes of our conversation it was clear to us that these guys are onto something special. Honestly what impressed us the most is that this is their second startup together. It takes a special kind of respect and role clarity among founders to want to keep disrupting industries together as a team. We are beyond thrilled to welcome Premlal and Lijo to the Nama clan, and we can’t wait to learn from them about the exciting space they want to dominate.”
By securing bridge funding and expanding into Saudi Arabia, Cargoz aims to shake up the trade and logistics industry by providing efficient and user-friendly on-demand storage solutions for SMEs. With its innovative platform, Cargoz will aim to address the pressing needs of businesses seeking flexible warehousing options.
Logistics and delivery startups such as Nigeria’s Fez and Morocco’s Cathedis are emerging across the MENA region and beyond to address a range of shortcomings in the logistics industry and the needs of smaller businesses.