Naqla, Egypt’s trucking technology platform and marketplace connecting truck owners with cargo companies, has raised $10.5 million in a Pre-Series A round. The round was led El Sewedy Capital Holdings, Hassan Allam Holdings and Sallam Family.
Naqla’s core mission is to modernize and expand Egypt’s supply chain through technology by automating orders between shippers and drivers through its two main apps.
Naqla has experienced rapid growth to 35+ active areas, overseeing the movement of more than 4.6 million tonnes cargo since its creation in 2017. Currently, Naqla works with over 400 shippers and 10,500 drivers throughout Egypt.
Naqla’s business model addresses the historically underserved road freight sector in Egypt, which has grown in importance since the start of Covid-related supply-side constraints. Businesses are continuously looking for further efficiencies in inland transport from Egypt’s major entry and exit ports to maintain the flows of goods within their supply chains.
The rapid growth of Egypt’s construction and consumer goods industry has meant demand for trucking continues to rise, with employees in the sector now making up 2% of the labour force, or 3-4% of GDP – $13bn in Egypt and $45bn across the MENA region. Naqla plans to bring together individual drivers who own many of Egypt’s 1.5 million trucks.
Naqla plans to use the funds from this investment to continue its commitment in technology advancement and digitization, positioning Naqla for growth in 2022.
Naqla was established in 2017 by Samer Sallam and Sherif Taher. The company has grown to 165 employees and is now available across all major countries.
Sherif Taher, Co-Founder and Chief Executive Officer of Naqla, commenting on the fundraiser, said: “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. We thank our investors for their part on the Naqla journey – this investment will enable rapid acceleration of our business and our planned vertical expansion into our new segments.”
Farouk Kadous, Board Member at El Sewedy Capital, added: “We’re thrilled to join Naqla on their journey towards a destination of completely changing the infrastructure of logistics in the region. This investment will enhance the synergies among our portfolio companies, which has tremendous infrastructure expertise. We love the leadership team at Naqla and are not just betting on the market size, but on their grit and vision.”