Tagaddod Raises $26.3M to Solve Biofuels’ Supply Chain Bottleneck

Abbas Aziz By Abbas Aziz
4 Min Read

Cairo-based renewable feedstocks platform Tagaddod has raised $26.3 million in Series A funding to address one of the biofuel industry’s biggest challenges: the shortage of certified, sustainable raw materials for biofuels and sustainable aviation fuel (SAF).

The funding round, among the largest for a climate tech company in the Middle East and North Africa (MENA), was led by The Arab Energy Fund (TAEF), a multilateral impact financial institution. Other participants included FMO (the Dutch entrepreneurial development bank), Verod-Kepple Africa Ventures (VKAV), and A15. Existing investors also joined the round, reaffirming confidence in the company’s vision and traction.

This investment marks TAEF’s first move into biofuel feedstocks and highlights the growing investor appetite for circular economy infrastructure that underpins the global clean energy transition.

The Biofuel Bottleneck

The global demand for biofuels and SAF is rising rapidly as industries accelerate decarbonisation efforts. However, supply has not kept pace due to a shortage of traceable and certified renewable feedstocks.

Refineries depend on vast quantities of materials such as:

  • Used Cooking Oil (UCO)
  • Acid oils
  • Animal fats

These are typically sourced from fragmented networks of restaurants, households, and small collectors. The lack of coordination and quality control across these supply chains creates a major bottleneck. Tagaddod’s mission is to solve this by formalising, digitising, and scaling the collection process.

Digitising Waste Collection

Tagaddod has developed a technology-driven platform that manages the collection, aggregation, and certification of waste-based feedstocks. The company collaborates with thousands of suppliers, from households to large food manufacturers, across its key markets.

By integrating AI-powered logistics and predictive analytics, Tagaddod transforms informal waste collection networks into efficient, traceable supply chains. This ensures that refineries and energy companies receive export-grade, certified materials that meet global sustainability standards.

Currently, Tagaddod operates regional hubs in Egypt, Jordan, and the Netherlands, with a growing footprint in Saudi Arabia.

The new capital will be used to:

  • Expand operations across Africa, Asia, and Europe
  • Strengthen the company’s automation and traceability technology
  • Scale processing capacity to handle higher volumes of feedstock

Building the Backbone of the Energy Transition

According to Nour El Assal, Co-Founder and CEO of Tagaddod, “This partnership allows us to accelerate the development of the infrastructure and technology needed for a cleaner energy future.”

The company’s work highlights an often-overlooked reality in climate tech: progress depends not only on innovation in fuels but also on the reliable sourcing and processing of raw materials.

For The Arab Energy Fund, this investment represents a strategic step into a sector vital to regional sustainability. As Maheur Mouradi, TAEF’s Chief Investment Officer, noted, “Tagaddod’s platform aligns with our mission to back scalable, sustainable infrastructure that drives the transition to alternative energy.”

By professionalising and digitising waste collection, Tagaddod is creating a scalable supply engine for the global biofuels market—turning waste into opportunity and enabling a cleaner, more resilient energy ecosystem.