UAE’s Cargoz closed seed funding round to expand into KSA this quarter

UAE-based logistics solutions startup Cargoz has closed a seed funding round for an undisclosed amount, according to a statement published last week. The round was led by Saudi-based VC fund Nama Ventures and saw the participation of RAZ Holding, Innovest Properties, regional family offices, and angel investors, the statement said.

Where will the funds go? The raised funds will go towards kicking off the startup’s operations in KSA in 1Q 2024.

About Cargoz: Established in January 2022 by CEO Premlal Pullisserry (LinkedIn) and CTO Lijo Antony (LinkedIn), the outfit connects SMEs looking for warehouse space with warehousing companies that have unused capacity. The company has a large network in the UAE and connects clients with providers of various warehousing services including cold storage, dry storage, chemicals, dangerous goods, food grade storage and other categories, according to the company’s website.

Dig deeper: Cargoz’s expansion to KSA comes at an opportune period, as national warehouse occupancy rates in KSA reached a record high of around 96% in H1 2023, according to Knight Frank ’s H1 2023 KSA report. The influx of new industrial licenses being issued in the country, at 557 in 2023 alone, is expected to result in an increased demand for warehouse space.