Cartlow acquires second-hand goods marketplace Melltoo

The move will allow the logistics tech platform to further consolidate its position in the UAE and Saudi Arabia

Reverse logistics company Cartlow has operations in the UAE and Saudi Arabia. Photo: Cartlow

Cartlow, a cloud-based logistics technology platform in the UAE and Saudi Arabia, has acquired second-hand goods marketplace Melltoo, as it continues to expand its operations in the region’s biggest economies.

The company took over classified platform Melltoo, which has been in operation since 2014, for an undisclosed amount.

Customers of Melltoo, which also serves the UAE and Saudi Arabian markets, will now be redirected to Cartlow’s platform that offers about half a million products across 30 categories with different payment options, it said in a statement on Monday.

“More than two million products have been sold on our platform since we launched … we are thrilled with our latest acquisition of Melltoo, further allowing consumers to transact on our platform in the region,” Mohammed Sleiman, founder and chief executive of Cartlow, said.

“Through Cartlow's platform, Melltoo customers will be enabled with a wide range of products and a more convenient way to shop and sell preloved products.”

The acquisition will allow Cartlow to further consolidate its position in the global reverse logistics market. It will also continue to offer its cloud-based technology services to companies within the reverse logistics ecosystem, supporting the development of the circular economy in the Gulf region, the company said.

Cartlow, which began as a re-commerce platform, has grown to become a technology company that offers software-as-a-service (SaaS) solutions to major companies in the reverse logistics ecosystem.

Reverse logistics refers to chains that process anything returning through the supply chain, enabling the reusing of products and materials.

The global reverse logistics market is projected to reach $958 billion in 2028 at an aggregate annual growth rate of 5.6 per cent, from $635bn in 2020, according to a report by Allied Market Research.

The Middle East reverse logistics market is largely untapped and Cartlow plans to increase its market share through organic growth as well as acquisitions.

In June, the company raised $18 million in a growth financing round to expand its operations in the region’s two biggest economies. Cartlow will use the funding to further mature its business ecosystem in the region by combining return management, recycling and re-commerce through technology.

Cartlow’s partner, Al Sulaiman Group, a Saudi Arabia-based investor with interests in sectors including omnichannel retail, logistics and e-commerce, led the­ financing round.

Since launching operations, Cartlow has worked closely with major brands and retailers in the UAE and Saudi Arabia. Its re-commerce platform for consumers and businesses offers merchandise at cheaper prices on a range of products.

Cartlow was among six venture companies that were granted licences by Saudi Arabia in March. These companies have committed to invest a combined $162m in the Saudi economy, the kingdom announced during the Global Entrepreneurship Congress in Riyadh.