TruKKer, a UAE-based freight logistics company, has raised $100 million ahead of a planned Initial Public Offering (IPO).
According to Bloomberg, the round was led by Bahrain-based asset manager, Investcorp, and Abu Dhabi-headquartered wealth fund, Mubadala Investment Company.
TruKKer had acquired Pakistani startup TruckSher last year as part of its expansion into the Pakistan land freight sector. It manages over 45,000 trucks in all the countries it operates.
The cash injection means that TruKKer will not need to raise another private equity round and this puts the company on a clear path to profitability by the end of 2023, according to Gaurav Biswas, founder, and CEO. He said that the company is considering listing on several exchanges over the next two to three years, including in Saudi Arabia.
TruKKer intends to use the funds to expand into new markets and is looking into acquisition prospects for accelerating growth. It currently operates in eight countries, including Pakistan, Saudi Arabia, the UAE, and Turkey, and manages a network of over 45,000 trucks via its platform, which connects shippers and freight carriers.
The company is backed by prominent MENA-focused (the Middle East and North Africa-focused) investment arms, such as Saudi-based venture firm Riyad TAQNIA Fund (RTF) and the World Bank’s International Finance Corporation (IFC).
During the calendar year (CY) 2022, venture capital fundraising in the MENA increased by 46 percent in the first half of the year to $1.8 billion despite a drop in global fundraising.
Companies in the UAE raised $699 million in the first half of 2022, making it the leading country in the MENA for venture capital financing. The Emirates was also the leader in terms of transactions, which increased 10 percent year on year in the first six months of CY22.
