Naqla, a Cairo-based startup that links truck owners with cargo firms, has raised $10.5 million in a Pre-Series A round led by El-Sewedy Capital Holding, Hassan Allam Holding and Sallam Family.

With its two main apps, the company seeks to automate orders between shippers and drivers through its two main apps.

Naqla has witnessed a rapid growth into more than 35 zones and oversaw the delivery of over 4.6 million tons of cargo since its inception, according to the company’s website. So far, it has secured more than 500 shippers and 10,500 drivers nationwide.

Naqla founders say that they will use the new funds to for digitalization, advanced technologies and for further growth in 2022, according to a statement released to the media.

“This investment will enable rapid acceleration of our business and our planned vertical expansion into our new segments,” said Naqla Co-foudner and CEO Sherif Taher. “We are now perfectly positioned to grow our digital logistics offering and market presence, bringing a much-needed technology infrastructure to the badly served Egyptian logistics and trucking industry, at a critical time in the country’s economic growth.”

The Egyptian logistics and freight expenditure is expected to surpass $ 50 billion by 2024, according to a Mordor Intelligence report. The rising spending is fueld by the country’s growing construction sector and ambition to eventually serve as a production and distribution hub for Europe and the MENA region.

The same Mordor report showed that roads carry more than 50 percent of freight in Egypt. For years, the land freight business has been marred by several inefficiencies, including poor road infrastructure, a highly fragmented and unreliable trucking sector. However, the market landscape is already changing.

In recent years, the Egyptian government has focused on upgrading its road and rail infrastructure as a perquisite for economic development. Meanwhile, the market has seen the emergence of several companies_ the likes of Naqla_ that offered smart solutions to freight logistics. In 2019, DHL launched its digital freight marketplace Saloodo in Egypt. Also in 2019, Trella, a local startup, was launched to serve the same purpose.

(Reporting by Noha El Hennawy; editing by Seban Scaria seban.scaria@lseg.com )