Equiptal logistics startup secures $1 Million for expansion

Equiptal, a logistics startup from Saudi Arabia, recently secured $1 million in a pre-seed round, with contributions from Plug and Play Middle East and several angel investors.

The brainchild of Ali Merie and Mansour Hmaid, Equiptal establishes a platform for the trading of heavy machinery, bridging the gap between contractors and suppliers. Merie envisions these funds advancing the company's staffing and bolstering its presence domestically.

"I'm acquainted with challenges from the supplier and contractor perspective, having been a contractor," Merie commented. "Our emphasis was predominantly on the contractor's sourcing challenges. The present Gega projects have stringent construction standards and tight schedules, resulting in contractors struggling to secure machinery for varying rental durations, presenting a constant challenge for procurement teams."

Additionally, the startup provides a fleet management service powered by telematics tech, assisting contractors in optimizing machinery use on-site. This ensures efficient equipment handling at specific locations, controlling costs, minimizing operational pauses, and controlling carbon emissions.

Merie cites the main obstacle as the restricted time window for contractors to familiarize themselves with and incorporate new tech. Since its foundation a year ago, Equiptal has brought on board 700 suppliers and catered to about 100 contractors.

For suppliers, their Software as a Service (SaaS) solution offers equipment performance tracking in real-time, stepping in during idle times. This service accelerates the rental process and enhances their market presence and reliability.

"In the past, an on-site overseer was essential to supervise equipment and track operational hours. But with our innovation, contractors can monitor these metrics remotely, be it from their office or elsewhere," Merie remarked.

Equiptal is involved in developmental projects throughout Saudi Arabia, notably those along the Red Sea coast, such as Neom City, with more in the offing. The startup's potential market is valued at a staggering $3 trillion, denoting the worth of upcoming projects over the next 3-5 years.