Toters raises $18 million
from IFC and investment funds
Proceeds to finance Iraqi expansion
Toters, a provider of delivery services of food, grocery, and other items through a mobile application, has closed a second round of funding of $18 million (Series B).
The funding round, which aims to finance Toters’ expansion in Iraq, was led by the International Finance Corporation (IFC), the World Bank’s private sector arm.
"Our partnership with IFC will speed up our growth and further our expansion in Iraq, which is one of the largest markets in the region,” said Tamim Khalfa, co-founder and CEO of Toters. “This is a massive opportunity. We will leverage our leading position and powerful platform to offer critical new services that benefit customers, retailers, and couriers alike,” he said.
Khalfa said they entered Iraq in 2019 and they plan to enter another Arab market and that his company had previously raised around $5 million that was used to finance its growth.
Dan Caruso, Managing Director of Caruso Ventures, which has participated in the Series B funding, said: “We see a big market in Iraq and an extremely capable team. We believe in this team’s ability to continue leading the digitization of Iraq’s e- and quick commerce markets.” Toters is already present on the Iraqi market where it delivers millions of orders per month. The company said in a statement that it is uniquely positioned to expand into all major Iraqi cities.
The other funds participating in the second round include Endeavor Catalyst, Merit Ventures, BY Venture Partners (BYVP), Saks Holding, Saned Partners, and March Holding as well as other regional and international funds and family offices.
Ghaith Yafi, co-founder and Managing Partner of BYVP, said: “We strongly believe in the execution capabilities of the Toters team and their ability to build a dominant business while focusing on delivering profitable growth and we are looking forward to partnering with the IFC to continue supporting the company in its next stage of growth.”
“IFC’s partnership with Toters is in line with our selective investment approach in Lebanon and aims to improve online access to goods and services, boost sales for SMEs, and unlock the digital economy in both Lebanon and Iraq,” said Hela Cheikhrouhou, IFC's Regional Vice President for the Middle East, Central Asia, Turkey, Afghanistan, and Pakistan.
Toters is now the largest delivery company on the Lebanese market after its head-to-head competitor India-based Zomato exited the market at the end of 2021 due to the economic and financial crises. Khalfa said that there is no need for a further expansion on the local market at present.
Toters, which employs over 500 people, is engaged in the delivery of food, grocery, electronics, retail, and courier services. Its customer base in all markets reaches half a million. The company also operates ‘Toters Fresh’, its own chain of grocery warehouses.
Date Posted: Jun 22, 2022