Egyptian startup Khazenly secures $2.5m seed funding

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Khazenly, which launched in mid-2021, recently announced a $2.5 million seed round. Mohamed Younes, Osama Aljammali, Mohamed Montasser and Ahmed Dewidar founded the platform.

It is an on-demand digital warehousing and fulfillment platform that helps merchants digitize their operations by providing an omnichannel solution.

Khazenly solves fulfillment challenges for small and medium-sized retailers that focus on businesses and customers, according to CEO Younes.

He claims that small traders lack the financial resources to rent a huge warehouse and carry out activities using manual techniques.

So while selling online (B2C), through retail stores (B2B), marketplaces, cross-border or a combination of various channels, Khazenly enables merchants and social commerce retailers to digitally optimize their business operations. ‘execution.

Younes further mentioned the importance of comfort to the business. According to him, this, combined with its comprehensive customer approach and data/AI-driven solution, sets Khazenly apart from competitors like ShipBlu, Flextock and Bosta.

The platform’s use of AI and big data, which stems from the CEO’s on-the-ground knowledge after working at IBM and Huawei for many years, allows him to advise retailers on which products to offer based on geography and demand.

Meanwhile, the rest of the leadership and management team have worked for companies like DB Schenker, Uber, Amazon and Baker Hughes and have experience in other areas of the industry.

According to the CEO, his company uses an asset-light approach because it does not own any warehouses or delivery cars.

For the latter, Khazenly works with more than 100 last-mile delivery companies to ensure that its merchants’ orders are delivered on time.

These companies receive variable monthly subscription fees based on their warehouse space allocation and order forecasts.

According to the CEO, after a three-week launch, the company discovered that some customers are unable to gauge how much space their restock will take up in the warehouse.

As a result, the team created a calculator where the customer inputs extremely fine scalar figures and the calculator automatically determines the warehouse space it will occupy, estimates the number of orders and generates a subscription range.

Younes declined to provide any actual data on the number of merchants on the platform or the gross merchandise value (GMV) generated, although he said Khazenly’s GMV was in the eight figures. Likewise, the company facilitates more than 16,000 self-service activities for merchants.

Arzan Venture Capital and Shorooq Partners, two regional venture capital firms, co-led the round. Camel Ventures, Averroes Ventures and a few angel investors are among the participants.

According to the announcement, the Egyptian startup intends to further develop its line of data-driven products.

One of the company’s offerings is mobile dark stores, which help to ship items faster with more efficient warehouse forecasting.

Younis also said the money will be used to quadruple the company’s facilities as part of a plan to develop more AI and data-driven solutions while expanding regionally.

Techbuild’s opinion

In the initial phases of their e-commerce businesses, merchants can simply manage end-to-end operations.

However, as their business grows, maintaining their own processes, from warehousing and logistics to delivery and collecting payments, can be challenging.

Despite a continued infusion of demand, this can prevent them from growing properly.

It is now necessary to delegate part of this work. E-commerce fulfillment services are helpful in this situation.

E-commerce in Africa has grown in recent years, thanks to the efforts of a few online retailers such as Khazenly and others.

Khazenly’s digitized fulfillment services have been used by companies ranging from fashion and electronics to consumer packaged goods, including XRPS by Tradeline and Mozare3.

The on-demand digital warehousing and fulfillment platform was launched for a soft launch in the middle of last year and is only now attracting institutional funding.


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