Saudi-based meal subscription service Calo broadens its horizons, acquiring two UK-based meal delivery companies and preparing for market entry.
Calo Expands into the UK Market, Marking Its First International Move
Calo, a Saudi-headquartered foodtech startup, has made its first international move by expanding into the United Kingdom. This expansion follows a $25 million Series B round, led by Nuwa Capital, which reportedly valued Calo at $250 million.
The acquisition of established local food delivery and meal subscription businesses, Fresh Fitness Food and Detox Kitchen, is a key element of Calo's expansion strategy in the UK. Caspar Rose, Calo's general manager for the UK, stated that this acquisition is "not just consolidation, it's an evolution." The aim is to integrate the operational expertise of these companies with Calo's technology and branding, with the goal of scaling revenue in the UK by up to 10 times over the next three years.
Calo's UK expansion also includes plans for physical expansion via retail stores and kiosks, complementing the digital subscription model. The startup is exploring further acquisitions of meal kit service companies globally to support international growth.
In addition to its expansion plans, Calo is focusing on product innovation. The company plans to leverage AI-driven platforms like "Calo Black" to enhance meal personalization, operational efficiency, and customer experience, strengthening their competitive edge. Calo also intends to expand its offerings by launching new product lines, including sports-focused meals and chef-curated selections.
Calo's UK expansion marks a significant milestone for the startup, following in the footsteps of another Middle Eastern consumer internet startup, Floward, which expanded into one of Europe's top markets in 2020. With its ambitious plans for growth and innovation, Calo is poised to compete with major UK players like Just Eat, Deliveroo, Gusto, and Wicked Kitchen.
References:
[1] Calo Press Release, "Calo Announces UK Expansion and Acquisition of Fresh Fitness Food and Detox Kitchen," www.calo.food
[2] TechCrunch, "Calo Raises $25M Series B to Scale its Meal Delivery Service in the UK," techcrunch.com
[3] Arab News, "Saudi foodtech startup Calo expands into UK market," arabnews.com
[4] Gulf Business, "Calo raises $25m Series B to expand its meal delivery service in the UK," gulfbusiness.com
- Calo's strategic move into the UK market, driven by a successful Series B round, opens doors for investment opportunities in the tech-driven food and lifestyle sector.
- With the aim to boost revenue by up to 10 times in the next three years, Calo's UK expansion encompasses business ventures in food-and-drink, technology, and physical retail expansion.
- In addition to consolidating market presence, Calo plans to bolster its competitive edge in the UK by leveraging advanced technology and AI-driven initiatives like Calo Black to enhance personalization, operational efficiency, and customer experience in the food-and-drink industry.
