Cairo-based Tagaddod, a renewable feedstocks platform, has raised a $26.3M Series A to tackle the growing shortage of materials needed for biofuels and sustainable aviation fuel (SAF).

The round, one of the largest for a climate tech company in the Middle East and North Africa (MENA) region, was led by The Arab Energy Fund (TAEF), a multilateral impact financial institution. The Dutch entrepreneurial development bank FMO, pan-African VC firm Verod-Kepple Africa Ventures (VKAV), and regional VC A15 also participated. Early investors also reinvested in the latest round.

The investment marks TAEF’s first direct venture into the biofuel feedstocks sector and signals growing investor interest in the crucial, yet often overlooked, infrastructure of the circular economy.

The Biofuel Bottleneck

Global demand for biofuels and SAF is surging, driven by aggressive decarbonisation targets and climate regulations, particularly within the aviation industry. However, this has created a critical bottleneck: a shortage of certified, traceable, and sustainable raw materials.

Biofuel refineries require vast quantities of renewable feedstocks, such as Used Cooking Oil (UCO), acid oils, and animal fats. These materials are often sourced from highly fragmented networks of restaurants, households, and small collectors, making aggregation and quality control a major logistical challenge. Tagaddod aims to solve this supply chain problem.

Digitising Waste Collection

Tagaddod has built a tech platform to manage the collection, aggregation, and tracing of waste-based feedstocks. It works with thousands of suppliers — from individual households and restaurants to food manufacturers — across its operating markets.

Using proprietary technology, including AI-powered logistics and predictive analytics, the company organises these traditionally informal supply chains. This process provides global off-takers and refineries with a reliable and certified supply of export-grade renewable materials.

With regional hubs already established in Egypt, Jordan, and the Netherlands, and a growing presence in Saudi Arabia, the new funding will be used to:

• Accelerate expansion into new and existing markets across Africa, Asia, and Europe.
• Enhance its technology stack with a focus on automation and traceability.
• Increase operational capacity to handle larger volumes of feedstock.

“This is more than just a funding milestone — it’s a strategic partnership that empowers us to take bold steps toward building the infrastructure, technology, and supply chains needed to support a cleaner energy future,” said Nour El Assal, Co-Founder and CEO of Tagaddod.

Tagaddod’s funding highlights a key theme in the climate tech space: the importance of building the foundational “picks and shovels” infrastructure for the energy transition. While much attention goes to the final product (like SAF), the sourcing and processing of raw materials are where the most significant logistical hurdles lie.

For TAEF, this investment represents a strategic move into a critical, underserved segment of the alternative energy market. “Tagaddod’s platform reflects our commitment to backing scalable, sustainable infrastructure that accelerates the region’s transition to alternative energy, resource efficiency, and circular economic models,” said Maheur Mouradi, Chief Investment Officer of The Arab Energy Fund.

By professionalising and digitising waste collection, Tagaddod is not just creating a valuable commodity but also building a global supply network essential for decarbonising transport. The company’s focus on profitability and long-term value, as stated by its CFO, suggests a mature approach aimed at sustainable growth rather than a cash-burn model, positioning it as a potentially long-term player in the global clean energy ecosystem.