RedCloud Holdings plc (NASDAQ:RCT) has signed a five-year licensing agreement worth up to $30 million to deploy its RAID AI engine in Saudi Arabia’s fast-moving consumer goods (FMCG) sector.
The contract is structured to generate $6 million annually, tied to revenues produced by RAID within the Saudi market. The deal targets the Kingdom’s FMCG sector, estimated at $68 billion, according to the company.
The announcement comes as RedCloud shares hover near their 52-week low of $0.56, recently trading around $0.57. Despite a difficult year that has seen the stock fall 62% year-to-date, InvestingPro analysis suggests the shares may be undervalued relative to their assessed fair value.
RedCloud estimates that Saudi Arabia faces an inventory imbalance of around $9.4 billion, driven by fragmented supply chains and limited real-time visibility. Its RAID platform is designed to address these issues by enabling real-time, data-driven decision-making across supply networks.
The agreement supports the company’s joint venture strategy in the region, combining local infrastructure with RedCloud’s AI-powered platform. It also aligns with Saudi Arabia’s Vision 2030 initiative aimed at diversifying and modernizing the economy.
This marks RedCloud’s second major licensing deal, following a $50 million joint venture announced in Türkiye in December 2025. Combined, the company’s contracted joint venture infrastructure revenue now stands at up to $80 million.
The expansion comes as RedCloud, which has a market capitalization of $31.53 million, reported revenue of $48.4 million over the past twelve months, representing growth of 63%. However, InvestingPro data indicates the company is rapidly consuming cash, even as analysts maintain a strong buy rating with price targets between $5 and $5.50.
“Global supply chains are losing close to $2 trillion annually to decisions made without intelligence,” said Justin Floyd, CEO and Co-Founder of RedCloud. “This agreement brings RAID, our AI infrastructure, into one of the most important and fast-moving FMCG markets in the world.”
Majid Alghaslan, Joint Venture Partner at RedCloud Arabia, said the partnership will improve access to supply and product choice for retailers, while providing manufacturers and distributors with the data and insights needed to scale operations.
RedCloud develops digital infrastructure for global trade, aggregating transaction and market data across the FMCG sector. The company listed on Nasdaq in March 2025 under the ticker RCT.
In recent developments, RedCloud said its R.A.I.D. (Realtime AI for Distribution) engine achieved accuracy levels above 80% across 3.7 million live FMCG transactions, based on the Normalized Discounted Cumulative Gain (NDCG) metric, a level considered commercially meaningful for ranking systems.
The company also appointed Raju Datla as Chief Financial Officer. Datla previously served as Chief Strategy Officer and brings experience in digital infrastructure and capital markets.
As part of its global expansion, RedCloud is establishing an AI research and development hub at ITU Teknokent in Istanbul, focused on advancing the R.A.I.D. engine and integrating it into the RedAI platform, with initial rollout in Türkiye.
Additionally, the company named Prof. Dr. Mustafa Ergen as a non-executive director. Widely recognized among the top 2% of scientists globally, he brings extensive expertise in artificial intelligence and deep-tech ventures, supporting RedCloud’s ongoing international growth strategy.