Middle Eastern startup Calo has announced a $25 million Series B funding round, setting the stage for significant expansion beyond the Gulf region. The Riyadh-based company, known for its ready-to-eat meal delivery services tailored to health-conscious consumers, is poised to revolutionize the global meal delivery market. With operations in Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain, Calo has built its reputation on providing customized meal plans to meet specific dietary goals, such as weight loss and muscle gain, or managing health conditions like diabetes or PCOS.
The funding round was led by Nuwa Capital, with additional participation from returning investors Khwarizmi Ventures and STV. This latest capital injection has brought Calo’s valuation to approximately $250 million, reflecting its strong growth trajectory and market potential. The startup plans to acquire a U.K.-based food company as part of its international expansion strategy, aiming to cater to a global audience. Calo’s unique approach to meal delivery focuses on personalization and convenience, offering users the ability to filter meals by nutritional needs and customize plans further to fit their lifestyles.
Calo’s success is rooted in its ability to address a niche in the market. While traditional food delivery platforms like Careem and Deliveroo dominate the convenience-based segment, Calo caters to customers who prioritize nutrition and health. This focus has resonated with its user base, leading to the delivery of 10 million meals this year alone. Customers receive chilled meals that can be reheated at their convenience, eliminating the hassle of meal preparation while ensuring nutritional value.
The company’s operational model is designed for efficiency, with one central kitchen per city and a fleet of 200 delivery vans ensuring timely service. This streamlined approach has allowed Calo to operate near break-even while delivering significant value to its customers. The startup plans to achieve profitability by 2025, aligning with its goal of going public in Saudi Arabia within the next few years.
In addition to expanding its geographic footprint, Calo is also enhancing its service offerings. The company plans to introduce deeper personalization features, allowing users to specify exact portions of protein, carbs, or fats in their meals. It is also exploring new business models, such as retail kiosks for grab-and-go meals in corporate offices and on-demand delivery services, to make healthy eating even more accessible.
Saudi Arabia currently accounts for 70% of Calo’s revenue, but the company sees immense growth potential in the UAE and other regions. The startup’s innovative approach has attracted a loyal customer base, with users buying 30% more meals compared to traditional food delivery platforms. This stickiness is attributed to Calo’s ability to combine the convenience of meal delivery with the added benefit of meeting specific health goals.
Calo’s founder, Ahmed Al Rawi, identified a gap in the market for personalized meal delivery and built the company to address this unmet need. He recognized that while many services offered meal recommendations, few provided actual meals tailored to individual dietary requirements. This insight has driven Calo’s success and positioned it as a leader in the personalized meal delivery space.
With its latest funding round, Calo is well-equipped to expand its operations, enhance its offerings, and make a global impact. The company’s commitment to innovation and customer satisfaction ensures it will remain a key player in the evolving meal delivery industry. As it prepares for its next phase of growth, Calo is set to redefine how people approach healthy eating, offering a unique combination of convenience and personalization that meets the needs of today’s busy, health-conscious consumers.
