Investment firm Fetchr verifies gains of $15 million in recent funds, anticipates garnering an additional $10 million in coming months
In a significant turn of events, Dubai-based logistics startup Fetchr has announced its comeback, following a successful Series C funding round and a series of transformative changes.
Fetchr, once on the verge of collapse late last year, was saved by a $10 million bridge of emergency financing. This year, the company has raised an additional $15 million as part of its Series C round, with early investor Beco Capital, Saudi-based Tamer Group, and French shipping company CMA CGM and its logistics arm CEVA Logistics contributing to the funding. Morgan Stanley Expansion Capital also participated in the round, although no further firm names were explicitly mentioned for this specific round.
The investment was approved at Fetchr's Extraordinary General Meeting (EGM) on 20th August 2020. The funds will be used to fuel the company's growth plans, which include expanding to China, the US, UK, and EU region.
Under the new management led by CEO Hussein Wehbe, Fetchr is implementing an asset-light business model for accelerated growth. The transformation team, appointed earlier this year, has closed non-performing country offices, improved efficiencies, reduced costs, and developed a Performance Predictor System. The company has also made significant strides in technology, increasing automated scheduling through AI, WhatsApp, and other channels, and improving its technology platform.
Fetchr offers flexible cash solutions and differentiates from traditional logistics companies. Its growth plans also include exploring strategic partnerships with global service providers and large retailers. The company's revenue diversification strategy for different product lines is valued by investors.
In a recent statement, Hussein Wehbe, the new CEO, expressed his expectations for a competitively efficient and speedy operation. He also announced that Fetchr is planning to announce new strategic partnerships, re-branding initiatives, and solidify its corporate culture by the end of the year.
The company's financial performance has also shown significant improvement. Fetchr's EBIDTA has improved by 77 percent, and the company plans to reach break-even EBIDTA by the 'latter part' of 2020. Fetchr has also announced the launch of its new website and logo today.
With these transformative changes, Fetchr is poised for a strong comeback, promising exciting times ahead for the logistics industry.
