Lebanon/ Iraq, July 5, 2022—IFC is investing in the delivery platform Toters to help expand online commerce, create earning opportunities, and foster the growth of small- and medium-sized enterprises (SMEs) in Lebanon and Iraq.
IFC is leading Toters' $18 million Series B financing round with a $5 million equity investment to help grow the company's operations in Iraq. Toters delivers food, grocery, and convenience products on-demand from more than 4,000 partner SMEs. This round of investment will help Toters expand its operations, especially in Iraq, helping more small businesses digitize and join the fast-growing realm of online commerce. Toters' growth will also create earning opportunities for couriers, especially young people.
"Our partnership with IFC will speed up our growth and accelerate 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."
Equity growth opportunities led by the Lebanese private sector continue to be hindered by the country's macroeconomic challenges. Digital platforms help drive economic recovery and a competitive business environment yet venture capital funding remains limited in both Lebanon and Iraq, according to the Global Private Capital Association.
Toters has served as a lifeline for SMEs, enabling them to continue to operate and reach consumers despite COVID-related lockdowns and other economic shocks. The company employs more than 250 people in Iraq and 250 people in Lebanon, including 50 engineers.
"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."
Toters will be IFC's first venture capital investment in Lebanon and Iraq. IFC's selective entry into this space is expected to attract more capital for tech startups in both countries.
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 merchants 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.
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