Introduction
Trella, a transportation marketplace and B2B technology platform, links shippers and carriers in real time. The startup completed a US$42 million Series A funding round, consisting of US$30 million in equity and US$12 million in debt facilities. It has since followed up with additional, undisclosed debt capital from Contact Financial Holding Egypt.
The top non-banking financial services provider in Egypt, Contact Financial Holding, has agreed to provide Trella with a sizeable financing facility so it can develop its business in a number of ways.
Trella, a transportation marketplace and B2B technology platform, links shippers and carriers in real time. The firm operates across the Middle East and Pakistan and has over 350 shipper partners, including household names like Coca-Cola, Maersk, Mondi, Henkel, Amazon, and DHL. Additionally, it works with over 30,000 carriers.
The startup completed a US$42 million Series A funding round, consisting of US$30 million in equity and US$12 million in debt facilities, to help it expand, as reported by Disrupt Africa in June 2021. It has since followed up with additional, undisclosed debt capital from Contact. Through Contact’s four subsidiaries—Contact Factoring, Contact Leasing, Contact Credit, and Contact Creditech—the two businesses are collaborating. In order to support Trella’s continued rollout in Egypt and regional expansion, each agreement offers a customized solution to finance Trella’s working capital needs, its carrier base, truck spare parts, and maintenance services.
Trella Egypt’s working capital requirements were funded through a financing deal negotiated with Contact Factoring. Through Contact Financial Holding’s other two subsidiaries, Contact Credit and Contact Leasing, which will finance Trella’s carrier base to buy trucks for either individual carriers or MSMEs owning a number of trucks and wanting to increase their fleet, this strategic partnership also benefits Trella.
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Additionally, as part of Contact Financial Holding’s partnership with Trella to support and guarantee the continuity of their truck drivers, Contact Creditech, a consumer finance company, will fund Trella carriers’ purchases on Trella Store, an online store created by the business to offer trucking products like tires, brakes, engine lubricants, maintenance services, and other essentials.
“We are fortunate to have Contact as one of our partners to provide different financing solutions to our customers. The supply chain has been witnessing a lot of innovation lately, but not as much was felt on scaling financing options to the stakeholders involved. Through our partnership with Contact, we are going to avail ancillary financing solutions to our carriers, in addition to sourcing working capital facilities to our trucking business, getting us one step closer towards achieving our vision to empower our communities,” said Omar Hagrass, CEO of Trella.
Zater, CEO of Contact Financial Holding, said Contact had always been keen on exploring and supporting new startup businesses.
“We are very proud to partner with Trella and provide them with the financial solutions needed to expand their business. Contact integrates the tech-based system and the company’s dynamic efforts toward enabling emerging digital platforms to support financial inclusion initiatives spearheading the lending-as-a-service in Egypt,” he said.
How will Trella utilize this funding?
Trella will utilize the money to continue to be the market leader in MENAP, where the road freight market is worth US$50 billion and to expand its technological capabilities and product development in order to spur growth.
“This US$42 million funding round is a huge endorsement of Trella’s capabilities, business model and market opportunity. We have a strong diversity of investors and we thank all participants for their support,” said Omar Hagrass, chief executive officer (CEO) of Trella.
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“It is great to have Maersk, as a shipper customer that uses Trella, invested in our future growth. The MENAP freight market is a significant one and urgently needs the transparency, reliability and efficiency that Trella and its technology platform provide. We are trusted and used by some of the world’s most recognisable brands, and we look forward to working with our partners to scale across MENAP. ”
Raed VC’s founding partner, Omar Almajdouie, said his firm had an “unwavering belief” in the Trella founders, which coupled with the booming freight sector, made the opportunity to lead the round “very exciting.”
Trella’s product innovation has enabled them to grow significantly in the past year despite the tough operating environment. This is a testament to their resilient business model and strong team. “We are excited to support the team on their growth journey,” he said.
Jeppe Hoier, a partner at Maersk Growth, said that trucking had changed quickly because new digital tools have made it possible for even the smallest companies to ship goods.
Trella’s platform is an excellent example of this democratisation of the logistics sector. Trella is at the same time our first investment on the African continent, founded by a team with significant experience from the startup scene, “he said.
Conclusion
The funding opportunity provided by Contact Financial Holding is a huge one for Trella. Would Trella utilize this opportunity this time to good use?
The past records of how they used is apast fundings good sign that they would utilize this one well. Well, only time would be the answer.