Riyadh – Mubasher: OTO, MENA’s leading shipping gateway and logistics platform, secures SAR 30 million ($8 million) in a Series A funding round led by Sanabil Investments, a wholly-owned company by the Saudi Public Investment Fund (PIF).

The fundraising transaction also witnessed the participation of Sadu Capital, Iliad Partners, Propeller, and Soma Capital, according to a press release.

OTO plans to use the proceeds of the funds to expand its presence in Saudi Arabia, UAE, and Turkey. It will also develop new features and enhance its platform targeting SMBs and enterprise online merchants.

The platform had previously raised SAR 12.30 million ($3.30 million) from VC funds and angel investors, including MEVP, Derayah Ventures, and 500 Global.

Mohammad Al Razaz, Co-Founder and CEO of OTO, commented: "Securing this funding round is a testament to our team's dedication and our commitment to transforming the shipping and logistics sector in line with Saudi Vision 2030."

A spokesperson from Sanabil Investments highlighted: "OTO has built a platform with a fully integrated set of functionalities to help companies of all shapes and sizes meet their logistics requirements. We are excited to partner with them to support their growth plans across the region.”

Furkan Uzar, CTO and Co-founder of OTO, stated: "This funding propels us toward our vision of becoming the shipping gateway of the internet. By bridging the tech gap between sales channels and shipping providers, we can accelerate our growth and offer customers streamlined, automated shipping solutions."

The GCC e-commerce market is expected to reach $50 billion by 2025, mainly driven by Saudi Arabia and the UAE’s growth.

Meanwhile, the Turkish e-commerce market is forecast to experience robust growth, with an annual increase of 11.58% from 2024 to 2029. By 2029, the market size is projected to hit $49.50 billion.

Last June, Sanabil Investments led a $10 million funding round for Simplified Financial Solutions Company (SiFi).