Saudi Arabia-based foodtech startup Calo has raised US$64 million in its series B funding round to expand globally and plans for a public listing by 2027.

Investors include Nuwa Capital, Saudi Technology Ventures, and AlJazira Capital.

Calo, known for its subscription-based meal services, will use the funding to launch long shelf-life snacks and frozen meals for retail.

It also aims to enhance on-demand delivery, build dark kitchens, and potentially develop its own logistics infrastructure.

Earlier this year, Calo entered the UK market by acquiring Fresh Fitness Food and Detox Kitchen.

The company currently operates in Saudi Arabia, the UAE, Bahrain, Qatar, Kuwait, Oman, and now the UK.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Saudi Arabia’s venture capital momentum provides strong tailwinds for foodtech expansion

Calo’s $64 million raise comes during a remarkable funding surge in the Middle East, where venture capital investment reached $678 million in Q1 2025—a significant increase from previous quarters1.

Saudi Arabia specifically led the region with $391 million in funding during this period, driven by supportive government policies and strong local capital focused on economic diversification2.

This funding environment reflects broader government initiatives to develop the kingdom’s startup ecosystem, with investors showing increased confidence following recent interest rate cuts that improved market sentiment across the region3.

The timing positions Calo well to capitalize on this momentum as it expands beyond the Middle East and builds infrastructure for on-demand delivery through dark kitchens and logistics networks.

2️⃣ Food tech IPOs show mixed track record that could inform Calo’s 2027 public listing strategy

Historical food tech public offerings reveal significant variance in market reception, with outcomes largely dependent on unit economics and market positioning rather than just growth metrics.

Blue Apron, the first major meal kit company to go public in 2017, saw shares drop nearly 50% within two months post-IPO despite initial enthusiasm, largely due to high customer acquisition costs and competition from Amazon4.

In contrast, successful food tech IPOs like GrubHub gained 31% on their first trading day in 2014, while Just Eat became the largest UK tech IPO that year with a £1.47 billion valuation4.

The key differentiator appears to be sustainable unit economics and defensible market position—factors that will be crucial for Calo as it expands into retail products and builds its own logistics infrastructure ahead of its planned 2027 Saudi Arabia listing.

This historical context suggests Calo’s success will depend heavily on demonstrating profitable growth and clear competitive advantages in its core markets before going public.

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