Kaso, a Dubai-based B2B start-up, has successfully raised $10.5 million in a recent seed funding round. The company plans to utilize the funds to expand its operations in the Middle East food and beverage procurement market, leveraging its newly launched FinTech platform. With over 5,000 partners in the UAE and Saudi Arabia, Kaso aims to enhance its restaurant supply management tools and achieve a gross merchandise value of $1 billion within the next 12 months.
The seed funding round saw participation from prominent investors, including Dubai-based Spade Ventures, Saudi Arabia's Hala Ventures and Seedra Ventures, Oman-based Cyfr Capital, Jersey's BY Venture Partners, San Francisco's Pioneer Fund, Singapore's Vulpes Ventures, as well as regional family offices and strategic investors from Saudi Arabia. Previous investors Global Founders Capital and Singapore's MSA Novo, who led Kaso's initial $2.1 million seed round in 2021, also participated. The well-known Silicon Valley-based accelerator, Y Combinator, is also among Kaso's investors.
Kaso's mission is to revolutionize the food and beverage supply chain, a historically traditional industry, by transforming its operations into a streamlined, technology-driven ecosystem. By digitalizing the relationship between restaurants and suppliers, the company aims to improve efficiency, transparency, and reduce food waste in the region. The newly launched FinTech platform will offer payment and credit facilities to restaurants, addressing key challenges faced by the industry.
While Kaso did not disclose specific expansion plans beyond the UAE and Saudi Arabia, the company's ambition to revolutionize the F&B supply chain aligns with the growing demand for innovative solutions in the sector. The Middle East is a highly competitive market with approximately 300,000 restaurants. The region's F&B sector is projected to reach $128.2 billion by 2029, driven by the increasing need for streamlined services and quick deliveries.
Dubai, in particular, has emerged as a significant hub for start-up funding, with over $2 billion raised collectively by start-ups in 2022. The emirate's focus on becoming a global destination for digital entrepreneurs has attracted substantial investment. According to a recent study by the Dubai Chamber of Digital Economy, more than 30% of funding rounds in the MENA region are attributed to Dubai-based start-ups, highlighting the city's strong entrepreneurial ecosystem.
Kaso, founded in 2021, has experienced remarkable growth, expanding its portfolio fivefold since its inception. Among its notable partners are renowned brands such as Burger King, Buffalo Wild Wings, Caribou Coffee, Chili's, and Tim Hortons. With its innovative approach to optimizing the F&B supply chain and the support of its recent funding round, Kaso is well-positioned to further solidify its presence in the market and contribute to a more sustainable future in the industry.