Egypt-based renewable energy startup Tagaddod has raised $26.3 million in Series A funding, marking a major step in its mission to transform waste oil into sustainable fuel feedstocks.
The round was led by The Arab Energy Fund (TAEF), a regional financial institution focused on sustainable energy and energy security, alongside participation from FMO (the Dutch entrepreneurial development bank), VKAV (Verod-Kepple Africa Ventures), A15 Ventures, and other returning investors.
The company said the fresh capital will accelerate its expansion across Africa, Asia, and Europe, support the development of AI-powered logistics and traceability systems, and increase infrastructure capacity for handling renewable waste-based feedstocks.
“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.
What Tagaddod Does
Founded in 2013 by Nour El Assal and Ahmed ElFarnawany, Tagaddod, which means “renewal” in Arabic, operates a tech-driven platform that collects, tracks, and certifies renewable waste-based feedstocks, including used cooking oil, acid oils, and animal fats.
These are sourced from thousands of small-scale suppliers such as households, restaurants, and food processors, turning what would otherwise be environmental waste into valuable raw material for biofuels and Sustainable Aviation Fuel (SAF).
The company’s technology ensures full traceability and compliance across its collection chain. Its digitized system allows real-time tracking of feedstock volumes and sources, guaranteeing that all materials meet international sustainability certification standards.
Tagaddod’s model addresses one of the biggest challenges in the biofuel sector, sourcing sustainable raw materials at scale, by connecting fragmented waste suppliers directly to global refineries.
Tagaddod’s Operational Network
With operational hubs in Egypt, Jordan, and the Netherlands, Tagaddod has built a presence across three continents, supplying certified renewable feedstocks to partners in Africa, Asia, and Europe.
The company has also expanded into Saudi Arabia, with plans to deepen its regional footprint in other key markets.
By combining ground-level sourcing with digital traceability tools, Tagaddod provides a structured, scalable solution for the growing global demand for clean energy inputs.
Its platform links informal waste collection networks, often dominated by small or local players, to industrial-scale buyers, improving efficiency and transparency across the value chain.
Milestones So Far and Investors’ Belief
Over the past decade, Tagaddod has evolved from a local startup into a regional leader in renewable feedstock supply. It has helped divert thousands of tons of used oils and fats from landfills and wastewater systems annually, significantly reducing carbon emissions and environmental pollution.
TAEF’s Chief Investment Officer, Maheur Mourali, described Tagaddod as “a founder-led company operating in a mission-critical and underserved segment.”
He said the firm’s model “reflects our commitment to backing scalable, sustainable infrastructure that accelerates the region’s transition to alternative energy and circular economic models.”
Ahmed ElFarnawany, Tagaddod’s Co-founder and CFO, noted that the new funding will focus on profitability and execution, not just growth for its own sake.
“This capital is not here to burn, it’s here to scale,” he said. “Our focus is building a business that delivers long-term value.”
Plans for the Newly Secured Fund
Tagaddod plans to use the Series A funding to strengthen its AI-driven technology stack, integrating predictive analytics for smarter collection logistics and automated traceability systems for enhanced regulatory compliance.
The funds will also go into building infrastructure that supports higher feedstock volumes, such as regional processing centers and storage facilities, while forming new strategic partnerships with biofuel producers and refineries.
By 2026, Tagaddod aims to expand its operational capacity by more than 150%, according to internal projections, and increase the number of suppliers in its network by over 30,000.
The company will also invest in talent and training programs to professionalize waste collection in emerging markets, turning what is often an informal economic activity into a structured, tech-enabled ecosystem.
Why This Matters
The global biofuel and SAF market, as revealed by research, is projected to grow from $141 billion in 2023 to nearly $245 billion by 2030, driven by stricter climate regulations and the aviation sector’s push toward decarbonization.
Yet, feedstock shortage remains a bottleneck: according to the International Energy Agency (IEA), sustainable feedstocks currently meet less than 20% of projected global biofuel demand.
Tagaddod’s solution directly tackles this gap by digitizing waste collection and ensuring renewable inputs for sustainable fuel production.
Its traceable supply chain model not only reduces environmental hazards but also creates new economic opportunities for thousands of small-scale collectors across Africa and the Middle East.
“Renewable feedstocks are at the core of the global energy transition,” ElFarnawany said. “By scaling responsibly, we’re enabling a future where clean fuel isn’t a luxury, it’s the standard.”
Talking Point
The $26.3 million funding secured by Egypt’s Tagaddod underscores the growing strength and global credibility of Africa’s startup ecosystem, particularly in climate and cleantech innovation.
It reflects how African founders are increasingly attracting major institutional investors and development finance partners who recognize the continent’s capacity to deliver scalable, tech-driven solutions to global challenges.
Tagaddod’s success sends a shift from an “aid-dependent” narrative to one of investment and impact, proving that African startups can perform at world-class levels while advancing sustainability goals.
This milestone is likely to spur further investor confidence, cross-border collaborations, and technology partnerships, positioning Africa not just as a consumer of innovation but as a source of transformative, climate-smart enterprise driving the global energy transition.
