From the verge of collapse, Fetchr has risen again with the backing of venture capital firm, BECO Capital, Saudi Arabia’s Tamer Group and French shipping company CMA CGM SA.
Dubai-based courier app Fetchr has raised $15 million in fresh funds to take their delivery service beyond the emirate, and into a KSA expansion. The move is part of a turning point hail mary-decision to save the app from collapse.
According to Bloomberg, if the latest financing round receives a unanimous shareholders’ approval, the Dubai-born service could increase pledges to a total of $25 million. If the deal goes through, the investment will be led by VC firm BECO Capital, Saudi-based Tamer Group and French shipping company CMA CGM SA.
The company, once a trailblazer amid the UAE ecosystem, was considered one of the most emergent startups in the past few years. Fetchr was valued at almost $300 million in 2017, and backed by Silicon Valley heavyweight investors.
This year, however, the B2B logistics and delivery company had almost filed for bankruptcy and, in a hail mary move, were on the lookout for buyers because of ‘rapidly diminishing’ financial performance. The management has since been shuffled, outward cash flow had decreased and operations had been suspended in Jordan, Bahrain and Oman, resulting in around 1,230 layoffs. Former managing director of United Parcel Service Inc.’s Middle Eastern operations will pick up the mantle from current interim CEO Mazen Mamlouk, who will remain as an advisor with Fetchr.
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