The Arab Energy Fund leads $26.3M financing for Tagaddod to expand international business

Logo of Arab Energy Fund (TAEF)

The Arab Energy Fund (TAEF), a leading multilateral impact financial institution dedicated to ensuring energy security and sustainability in the MENA region, has announced that it has led Tagaddod’s $26.3 million Series A equity round. Tagaddod, a pioneering platform for biofuel feedstocks, will direct this funding toward further strengthening its role in enabling the growing production of sustainable aviation fuel (SAF) and renewable diesel (RD).

In a statement, TAEF said Tagaddod is a cross-border tech-powered leader in the collection, aggregation, and traceability of biofuel feedstocks, specializing in used cooking oil (UCO) collection and traceability, with a growing operational footprint across Africa, Asia, and Europe. Tagaddod is active in key markets such as Egypt, Jordan, Saudi Arabia, and the Netherlands, leveraging its proprietary technology to optimize logistics, increase efficiency using different AI models, and ensure full compliance with international sustainability and certification standards, a growing requirement for low-carbon feedstock supply chains globally.

Founded by a young team of entrepreneurs, Tagaddod has evolved from a local startup into a high-impact regional platform, forging partnerships with municipalities, commercial clients, and international offtakers. The platform’s scalable, tech-powered business model positions the company as a key enabler of the circular economy and a strategic player in the emerging biofuels sector.

TAEF added that this transaction marks its first direct investment in the biofuel feedstocks space and lays the foundation for potential future developments in biodiesel and sustainable aviation fuel (SAF), both critical to TAEF’s strategy. This investment aligns with TAEF’s dual focus on both traditional and new energy sectors, in which financing is provided to build a balanced and viable economic future for the region. New energy sectors include (while not limited to) low-carbon infrastructure, circular economy solutions, and alternative fuel value chains.

“This is a compelling opportunity to support a founder-led company operating in a mission-critical and underserved segment,” said Maheur Mourali, TAEF's Chief Investment Officer.

“Tagaddod’s platform reflects our commitment to backing scalable, sustainable infrastructure in line with the region’s ambition in advancing the new energy sector, enhancing resource efficiency, driving circular economic models, and leading in the biofuels space,” Mourali added.

Proceeds from the Series A round will fund Tagaddod’s continued regional expansion, technological enhancements, and operational scale-up, reinforcing its position as MENA’s leading biofuel feedstocks platform and a vital contributor to global sustainable feedstock supply.

“We are excited to welcome The Arab Energy Fund as a strategic investor and long-term partner,” said Nour El-Assal, Co-Founder and CEO of Tagaddod. “The Arab Energy Fund’s sector expertise, regional reach, and shared commitment to sustainable energy will be instrumental in scaling our impact and accelerating our growth.”

This investment further strengthens Tagaddod’s shareholder base, which includes FMO, the Dutch entrepreneurial development bank, Verod-Kepple Africa Ventures (VKAV), a pan-African venture capital firm, and A15 Ventures, a leading MENA-based venture capital firm. Together with these partners, TAEF supports Tagaddod’s mission to become a regional champion in circular economy innovation and sustainable fuel development.