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Ecommerce logistics firm Locad secured $9 million in a pre-series B funding round to fuel its expansion into Saudi Arabia and the United Arab Emirates.

What does this mean?

Amidst a surge in online shopping post-pandemic, Locad's strategic move taps into the growing need for advanced logistics solutions in the Middle East. With investors like Global Ventures and Reefknot Investments leading the charge, plus support from Sumitomo Equity Ventures and others, Locad's valuation climbs to a speculated $60 million. The funds will bolster AI enhancements, focusing on improving demand forecasting and inventory management tools. Currently, Locad integrates with major ecommerce platforms like Shopify, Shopee, Amazon, and TikTok Shop to streamline logistics for over 300 clients in Southeast Asia and Australia.

As online shopping becomes a mainstay, efficient logistics aren't just crucial but a competitive edge. Locad's investment in AI technology aims to refine logistics operations, potentially setting a new standard in ecommerce fulfillment and impacting how companies across sectors manage their supply chains.

The bigger picture: The Middle East's digital push.

The expansion highlights the Middle East's burgeoning ecommerce landscape, bolstered by tech advancements and a growing digital economy. With increased demand for logistics services, Locad's entry could drive further growth and innovation in the region, shaping a more connected and efficient global market.