Morocco’s CloudFret closes $2.1m round to drive expansion
In a significant move to enhance its operations, CloudFret, a transport and logistics startup, has successfully concluded a new funding round, securing $2.1 million from investors AfriMobility and Azur Innovation Fund. Operational in Morocco since 2021 and extending its presence to Marseille, the startup is set for rapid expansion.
Founded in 2021, CloudFret initially addressed the challenge of empty truck returns between the Mediterranean shores by leveraging an AI algorithm-driven platform connecting shippers and carriers. This mobile Software as a Service (SaaS) solution is accessible to European carriers, freight forwarders, and shippers through various download platforms.
With the infusion of new funding, CloudFret aims to introduce an innovative solution designed to optimize empty truck returns, with a specific emphasis on the intra-European market. The startup also plans to expand its customer base among shippers and partner carriers while doubling its workforce by the end of 2024.
Transport touches on almost every sector of the African economy and is crucial to its development. Within the industry, the trucking and logistics market accounts for almost 80% of transported goods but players in this space often grapple with challenges caused by fragmentation and lack of transparency. With digitization, venture-backed startups such as CloudFret solve this problem while tapping into the lucrative industry. Despite a sustained period of decline over the last few years, affected by a fall in oil prices and geopolitical strife, the Middle East and Africa are fast becoming a region of logistics and supply chain opportunity. Cargo volumes are estimated to double in most countries of the region. At such levels, several challenges and opportunities arise, for airports, seaports, freight & forwarding, and logistics players. To put a figure on the opportunity, available data estimates the Middle East & Africa transport and logistics market size at $153.79 billion in 2023, a figure expected to reach $209.32 billion by 2029, growing at a CAGR of more than 6.36% during the forecast period.