Toters closes $18Mn Series B Round
Toters closed an $18Mn Series B funding round. The record round, the largest in Iraq, is being led by the IFC, a member of the World Bank Group, and includes participation from Endeavor Catalyst, Merit Ventures, BY Venture Partners, Saks Holding, Caruso Ventures, Saned Partners, March Holding and other regional and international funds and family offices.
Founded in 2017, Toters is one of the first technology pioneers in Lebanon and Iraq. The company developed a platform that delivers high quality convenience to customers (deliveries range from food, grocery, electronics, retail, and courier services) and currently collaborates with +4,000 partners, serving half a million customers in all of its markets. Customers on the platform also have access to Toters Fresh, a chain of dark grocery warehouses that deliver within 15 minutes. Through constantly focusing on innovation, improving customer experience, and putting the customer first, Toters has earned the reputation of being one of the best players in the industry.
Toters, which employs over 500 people, with over 50 engineers in product and tech development, is one of the first companies to advance the digital economy in its markets. It is also setting a benchmark for successful companies in reimagined future Lebanese and Iraqi economies.
Iraq represents a huge untapped consumer internet opportunity and fragmented food, grocery, and retail markets. With its existing scale and leadership position, Toters is already delivering millions of orders every month and is uniquely positioned to tap into this opportunity and expand into all major cities in Iraq.
"Our partnership with IFC will speed up our growth and further our expansion in Iraq, which is one of the largest markets in the region,” said Tamim Khalfa, Toters’ co-founder and CEO. “This is a massive opportunity. We will leverage our leading position and powerful platform to offer critical new services that benefit customers, retailers, and couriers alike.”
This would be the IFC’s first Venture Capital investment in Lebanon and Iraq. “Tech-enabled ventures have the power to unlock new pathways for resilient, sustainable economic growth” said Hela Cheikhrouhou, IFC's Regional Vice President for the Middle East, Central Asia, Turkey, Afghanistan, and Pakistan. “IFC’s partnership with Toters is in line with our selective investment approach in Lebanon and aims to improve online access to goods and services, boost sales for SMEs, and unlock the digital economy in both Lebanon and Iraq.”
Nael Halwani, Toters co-founder and COO said: “This new investment will further strengthen Toters’ leadership position in Iraq and Lebanon. Toters just scratched the surface of a 100Bn USD consumer spending market in Iraq - we will continue growing by providing the best and most reliable service to consumers, supporting local merchants & restaurants, and empowering couriers.”
BY Venture Partners led Toters Series A round in 2018 and is participating strongly in this round. “BY is backing an exceptional team at Toters - led by Tamim and Nael. We’re proud of their success in Lebanon and excited about the potential in Iraq, one of the largest markets in MENA. We strongly believe in the execution capabilities of the Toters team and their ability to build a dominant business while focusing on delivering profitable growth and we are looking forward to partnering with the IFC to continue supporting the company in its next stage of growth.”, said Ghaith Yafi – BYVP Co-founder and Managing Partner.
Also participating in the round is Endeavor Catalyst, a co-investment fund set up by Endeavor to exclusively support Endeavor Entrepreneur-led companies and to sustain Endeavor’s long-term operations in a mission-aligned way. “We’ve been big fans of the Toters founding team since they joined the Endeavor network in 2018 and have been tracking their performance. This year, Endeavor recognized Toters as Outliers, a program that recognizes the top 10% companies in our portfolio, which is a testament to the company’s impact on the local economies in the markets they operate in.” said Allen Taylor, Endeavor Catalyst’s Managing Partner.
Toters received backing from several regional and international family offices. Dan Caruso, Managing Director of Caruso Ventures and a 3x decacorn entrepreneur, said “We see a big market in Iraq and an extremely capable team. We believe in this team’s ability to continue leading the digitization of Iraq’s e- and quick commerce markets.”
Dominique Locher, a long-time Swiss eFood entrepreneur who helped set up several online grocery ventures, including the profitable LeShop.ch that was sold to the #1 Swiss retailer MIGROS, also participated. “I feel extremely confident about the intersection in which Toters super App is operating, and the Iraq market which continues to experience economic growth with a tech-savvy young consumer base. I am confident Toters will continue to establish itself in the region as a household name for consumers embracing convenience like grocery delivery, courier services, payment, and financial transaction services.” said Locher.
About Toters
Toters is an app that simplifies customers daily purchases from any local restaurant, grocer, electronics store, pharmacy, or any store nearby. The company (over 500 team members) developed a tech platform that connects local stores with couriers for quick delivery. Toters also operates Toters Fresh dark grocery stores to deliver essentials in as fast as 15 minutes. The service runs in 10 markets across Lebanon and Iraq with over 500,000 customers and over 4,000 partners. For more information, visit www.totersapp.com.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.