Calo Raises $25M to Expand Personalized Meal Delivery
Discover how Calo, a Middle Eastern startup, is redefining meal delivery with $25M in funding, offering tailored ready-to-eat meals for health-conscious consumers.
In a region where busy lifestyles and convenience often dictate dining choices, Riyadh-based startup Calo is carving a unique niche in the competitive meal delivery market. The company has raised $25 million in Series B funding, led by Nuwa Capital and supported by Khwarizm Ventures and STV, to further its vision of personalized ready-to-eat meals. According to industry sources, this latest round brings Calo’s total funding to $51 million, with its valuation now hovering around $250 million.
Redefining Meal Delivery with Personalization
Unlike traditional food aggregators such as Talabat, Deliveroo, or Careem, Calo targets health-conscious consumers seeking more than just convenience. The startup offers tailored meal subscriptions catering to specific dietary goals like weight loss, muscle gain, or managing chronic conditions such as diabetes, PCOS, and IBS. By focusing on individual needs, Calo is tapping into a lucrative market segment willing to pay a premium for customization.
“Delivering nutritious, healthy, and customized ready-to-eat meals is a powerful idea,” said Khaled Talhouni, managing partner at Nuwa Capital. “Whether you’re looking to build muscle or lose weight, Calo’s approach to meal personalization sets it apart.”
This strategy has paid off. Calo’s model, combining dietary specificity with convenience, has resonated with consumers. The company reported delivering over 10 million meals this year alone, with an average meal priced between $7 and $9. Customers benefit from a range of options, including breakfast, lunch, dinner, and snacks, which can be tailored for preferences like high-protein, low-carb, vegetarian, or balanced meals.
Growth Fueled by Innovation and Expansion
The funding injection will enable Calo to enhance its meal customization features further. Future plans include allowing users to fine-tune macro ratios like protein, carbs, and fats or exclude specific ingredients entirely. Additionally, Calo is exploring new business models, such as retail kiosks for grab-and-go meals in office spaces and an on-demand delivery service.
The startup’s ambitions extend beyond the Middle East. Calo is in the process of acquiring a UK-based food startup as a springboard for its global expansion plans, set to launch in 2025. This move aligns with the company’s broader goal of entering public markets within a few years, with a potential listing in Saudi Arabia.
Streamlined Operations Drive Success
Calo’s operational efficiency is a cornerstone of its success. The company relies on a centralized kitchen model in each city it serves, delivering meals via a fleet of 200 vans supported by smaller vehicles and individual riders. Meals arrive chilled, and ready for reheating, ensuring freshness and minimal logistical overhead.
“Our approach keeps operations lean while meeting customer demands for quality and convenience,” said founder Ahmed Al Rawi.
Al Rawi’s entrepreneurial journey began in Bahrain in 2019, following a stint advising startups in New York. Recognizing a gap in the market for personalized meal delivery, he built Calo to address the needs of time-strapped professionals seeking both nutrition and convenience.
Tapping Into a Growing Market
According to MarkNtel Advisors, the Middle Eastern meal delivery market is projected to reach $11.2 billion by 2030. Calo’s emphasis on personalization positions it to capture a significant share of this growth. The company reports that customers order 30% more meals through its service compared to traditional food aggregators, a testament to the stickiness of its offering.
“The Gulf Cooperation Council (GCC) market has a natural propensity for food delivery,” added Talhouni. “Calo’s bulk milk-run logistics model gives it a competitive edge in fulfilling this demand efficiently.”
What’s Next for Calo?
In addition to its planned UK acquisition, Calo is targeting a $25 million extension round by Q1 2025. The funds will support deeper meal personalization, expansion into new markets, and innovative service models. With a proven formula and ambitious roadmap, Calo aims to redefine the future of meal delivery, blending health, convenience, and personalization.
Key Takeaways
Calo’s rise underscores a growing demand for tailored solutions in the food industry. By addressing specific dietary needs and leveraging operational efficiency, the startup has positioned itself as a leader in the Middle Eastern market and beyond. As it looks to expand its global footprint, Calo’s journey serves as a testament to the power of innovation and customer-centric design in disrupting traditional industries.
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