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American Focus > Blog > Tech and Science > Calo raises $25 million to expand its ready-to-eat meal service beyond the Middle East
Tech and Science

Calo raises $25 million to expand its ready-to-eat meal service beyond the Middle East

Last updated: December 30, 2024 3:15 am
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Calo raises  million to expand its ready-to-eat meal service beyond the Middle East
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Calo, a Middle Eastern startup, has recently secured a significant funding injection as it seeks to expand its offerings of customized ready-to-eat meals. The company’s focus on personalized meal subscriptions for specialized segments such as weight loss, high protein intake, and balanced meals sets it apart in the meal delivery market in the region.

With the meal delivery market in the Middle East projected to reach $11.2 billion by 2030, Calo’s emphasis on customization and quality has resonated with customers looking for convenient yet healthy meal options. The startup aims to further tailor its offerings to cater to specific dietary needs, such as meals for muscle gain, diabetes, IBS, and PCOS.

In a move to expand beyond the Middle East, Calo is in the process of acquiring a food startup in the U.K. with plans for global expansion. The recent $25 million Series B funding round led by Nuwa Capital, Khwarizm Ventures, and STV has further fueled the company’s growth ambitions, valuing Calo at around $250 million.

Calo’s success lies in its ability to combine meal delivery convenience with personalized nutrition, allowing users to choose from a variety of healthy meal options and customize their plans. The company’s unique approach has resulted in serving 10 million meals this year, with an average meal cost ranging from $7 to $9.

Founder Ahmed Al Rawi’s vision for Calo stemmed from a gap in the market for personalized meal delivery services that cater to individual health goals. By offering tailored meal recommendations based on customer preferences and health needs, Calo has seen a 30% increase in meal purchases compared to traditional food aggregators.

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Operating with one central kitchen per city and a fleet of 200 vans across the Middle East, Calo ensures timely delivery of chilled meals that can be easily reheated by customers. With plans to close a $25 million extension round by Q1 2025 and a goal of going public in the near future, Calo is poised for continued growth and success in the competitive meal delivery market. Calo, a startup focused on providing personalized meal delivery services, has been able to maintain efficient operations by minimizing the number of delivery centers and adhering to scheduled deliveries. This approach has allowed them to keep their operations quick and lean.

Looking ahead, Calo has ambitious plans for the future. They aim to introduce even deeper levels of personalization for users, allowing them to specify the exact portions of protein, carbs, or fat they want in a meal, as well as the option to remove specific ingredients. This level of customization will enhance the overall customer experience and cater to individual preferences.

In addition to enhancing personalization, Calo is also exploring new business models. They are considering setting up retail kiosks for grab-and-go meals in locations like corporate offices, as well as launching an on-demand delivery service. These initiatives are aimed at expanding their reach and catering to a wider range of customers.

While Saudi Arabia currently accounts for 70% of Calo’s revenues, the company sees significant growth potential in the UAE market. They expect the UAE to become a key revenue driver in the coming years. Despite this regional focus, Calo has achieved impressive financial milestones, reaching nine figures in annual revenue and operating at a nearly break-even state. The company aims to achieve profitability by next year, positioning themselves for future growth and a potential public listing.

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According to Calo’s founder, the company’s capital-efficient approach has allowed them to grow organically without the need for extensive fundraising. However, they have recently raised funds to support their expansion into new business models, target additional customer segments, and enter new geographic markets. This strategic approach to growth underscores Calo’s commitment to innovation and long-term success.

In conclusion, Calo’s future roadmap is focused on enhancing personalization, exploring new business models, and expanding into new markets. With a strong foundation in place and a clear vision for the future, Calo is well-positioned to capitalize on emerging opportunities and drive continued growth in the competitive meal delivery industry.

TAGGED:CaloEastExpandMealMiddleMillionraisesReadyToEatservice
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