Calo, a Middle Eastern startup offering customized ready-to-eat meals, has raised $25 million in a Series B funding round led by Nuwa Capital. STV and Khwarizmi Ventures, along with regional family offices, also participated in the round, which values the company at around $250 million. Founded in Bahrain in 2019 by Ahmed Al Rawi, Calo differentiates itself from food aggregators like Careem, Deliveroo, and Talabat by providing meal subscriptions tailored to specific dietary needs, such as weight loss, high protein intake, or balanced meals.
The company plans to further personalize its offerings to cater to segments seeking muscle gain or managing conditions like diabetes, IBS, or PCOS. Calo currently operates in Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain, allowing users to choose healthier ready meals for breakfast, lunch, dinner, and snacks, with various dietary filters. Users can customize their meal plans and skip days as needed.
This year, Calo has served 10 million meals, with the average cost ranging from $7 to $9. The startup aims to expand its footprint outside the Middle East next year, with ambitions to go global. To support this growth, Calo is in the process of acquiring an unnamed food startup in the UK.
The company has raised a total of $51 million across multiple rounds and plans to secure a $25 million extension round by Q1 2025.
Calo’s customizable meal subscriptions thrive
Khaled Talhouni, managing partner at Nuwa Capital, expressed excitement over Calo’s concept, stating, “Whether you want to build muscle or lose weight, Calo helps you personalize meals, and that idea has us excited.”
Calo reports that people are buying 30% more meals on its service compared to on-demand food aggregators, attributing this stickiness to the convenience of meal delivery combined with the ease of finding dishes that meet specific health goals.
The company currently operates one central kitchen per city and utilizes a fleet of 200 vans for delivery across cities. Looking ahead, Calo plans to introduce deeper personalization for users, allowing them to specify the exact portion of protein, carbs, or fat in a meal or remove ingredients. The startup is also experimenting with new business models, such as retail kiosks for grab-and-go meals and an on-demand delivery service.
Saudi Arabia represents 70% of Calo’s revenues, with the UAE coming in second at 15%. However, the company expects significant growth in the UAE in the coming years. This year, Calo hit nine figures in annualized revenue and aims to reach profitability by next year, ahead of its planned IPO in Saudi Arabia in the next few years.
“Because we are capital-efficient, we didn’t need to raise money and could have grown organically. But we saw new growth opportunities. So we raised money to expand our business models, cater to more segments, and open up new geographies,” Al Rawi said.
