Egyptian on-demand warehousing and fulfillment platform Khazenly has raised $2.5 million in seed funding. Venture capital firms Arzan Venture Capital and Shorooq Partners co-led the funding round which also received participation from Camel Ventures, Averroes Ventures, and quite a handful of angel investors.
With the funding, the Egyptian startup plans to widen its portfolio of data-driven products, Khazenly said in a statement it issued. One of such products is its mobile dark stores which enable faster shipping of items. The startup also plans to build more AI and data-driven products and expand geographically. “We are very excited and proud of what we did the last few months. And I believe in the coming days we will do even more strategic and key milestones to let our merchants grow even more,” Khazenly’s CEO said.
Founded in 2021 by Mohamed Younes, Osama Aljammali, Ahmed Dewider, and Mohamed Montasser, Khazenly is an on-demand warehousing and fulfillment management platform. Its omnichannel solution allows merchants and businesses to digitalize their operations.
The startup deal with fulfillment challenges for businesses in the small and medium categories with a focus on their consumers and business. These small and medium businesses mostly are devoid of the resources needed to rent a warehousing space and are usually left to carry out their businesses manually. Khazenly wants to change that. The startup allows merchants and social commerce retailers to digitalize their fulfillment process using its solution. “There is no player in Egypt matching the digital experience that we already have to manage both B2C and B2B. Though we solve both aspects separately, we are solving a big pain in the market by automating both,” Khazenly’s CEO explained.
According to Khazenly’s CEO Mohamed Younes, the startup also places a huge focus on providing convenience. This, plus the multifaceted client approach and data/AI-driven product, makes the startup stand out from rivals, the CEO said. “The combination of all this through the same platform allows us to have a big differentiation.”
Other services that Khazenly offers include; cross-docking, transportation, delivery, and cash collection services.
“Our clients carry out all these seamless experiences using our digital platform. Also, beyond the current fulfillment, we do many activities with our clients and support them in marketing and other value-added services,” CEO Mohamad Younis said. The startup operates an asset-light model and doesn’t own any of the warehouses or delivery vehicles it uses to operate. It partners with more than 100 last-mile companies to make deliveries.
Merchants have to pay monthly subscription fees calculated from the space allocated to them in the warehouse and the number of orders. Therefore, these fees will vary from merchant t merchant. “After the launch of three weeks, we found that some of the clients cannot calculate how much space their restock will consume in the warehouse. So we developed a calculator in which the client puts in very nice scalar quantities and automatically calculates how much space they will consume in the warehouse, estimates the number of orders, and puts out a subscription range,” the startup’s CEO said.
The CEO who confirmed the company’s GMV is in eight figures failed to provide information on the number of merchants on its platform or GMV processed.
Khazely is proof that the “logistics tech and fulfillment sector is still up for disruption,” Laith Zraikat, a partner at Arzan said.
Source: TechBooky Business