Dubai fund takes stake in last-mile operator
Cultiv8 operates a $100m fund, while Fodel has launched services in UAE and Saudi Arabia
Dubai: A subsidiary of Mohammed Bin Rashid Fund for SMEs has picked up a stake in Fodel, the logistics start-up that specialises in last-mile delivery in the UAE. The investment was done by Dubai Cultiv8 Investments Ltd., and manages a $100 million tech fund.
“Middle East-based delivery and transport startups rank third by number of investment deals they attracted during 2019, which is a clear indication of the sector’s strong growth potential,” said Arif Al Alawi, CEO of Dubai Cultiv8. “In fact, they accounted for 19 per cent of total funding directed into startups last year.
“Through our partnership with Fodel, we contribute to the continuous development of the logistics and ecommerce sectors in the UAE.”
FODEL gives online shoppers the option to collect their parcels at the time they want, from any of its 1,000 pick-up and drop off locations, which are part of its UAE-wide parcel collection network. They include gas stations, groceries, pharmacies and stores from other retail categories that are open until midnight or 24x7 for maximum convenience.
The company is also launching in Saudi Arabia, where it has also developed a network of 1,000 pick up, drop off points spread across all main high-density regions but also in remote areas.
According to Soumia Benturquia, CEO of Fodel, said: “Cultiv8 is a strategic partner of great importance for Fodel as we continue to invest in our expansion and strengthening our network in the GCC.”