Trella, Egyptian Logistics Startup Raises Huge Debt Facility to Facilitate Expansion

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, which operates across the Middle East and Pakistan, 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.

Trella concluded a US$42 million Series A fundraising round, consisting of US$30 million in equity and US$12 million in lending facilities, to help it expand, as reported by Disrupt Africa in June of last year. It has now followed up with further, 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.

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.

“Contact is a lucky partner of ours, enabling us to offer our consumers a variety of financing options. Recently, the supply chain has seen a lot of innovation, but less was seen when it came to expanding finance choices to the connected parties. In addition to sourcing working capital facilities for our trucking company through our partnership with Contact, we will make ancillary financing solutions available to our carriers, moving us one step closer to realizing our vision of empowering our communities, according to Omar Hagrass, CEO of Trella.

Contact Financial Holding’s CEO, Said Zater, stated that Contact has always been interested in discovering and assisting fresh start-up enterprises.

“We are thrilled to work with Trella and offer them the financial options they require to grow their company. Contact combines the tech-based system and the business’ dynamic efforts to assist growing digital platforms that are driving lending-as-a-service activities in Egypt, the man said.