Egyptian logistics startup Khazenly raises $2.5m seed round to drive product development

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Published: 2022-06-16
Khazenly, an Egyptian <strong>startup</strong> in the <strong>logistics</strong> industry, has raised $2.5 million in a <strong>seed round</strong> to fuel product development.

Khazenly, a digital logistics business based in Egypt, has just completed a seed fundraising round that brought in US$2.5 million. With this money, the company plans to accelerate product development and more than double its space.

Khazenly was established in the middle of 2021 by Mohamed Younes, Osama Aljammali, Mohamed Montasser, and Ahmed Dewidar. Since its inception, the company has developed a one-stop-shop solution for the full spectrum of fulfilment services, including warehousing, cross-docking, transportation, delivery, and cash collection services.

The end-to-end platform provided by the startup enables retailers and e-commerce entrepreneurs to digitally optimize the fulfilment processes of their businesses, regardless of whether they are selling their products online (B2C), via retail stores (B2B), marketplaces, internationally, or through any combination of these channels.

Other investors include Camel Ventures, Averoes Ventures, and numerous angel investors. The seed fundraising round was for US$2.5 million, and it was co-led by top regional venture capitalists Arzan Venture Capital and Shorooq Partners.

The funds will be put toward expanding Khazenly's product and service offerings as well as its existing facilities by a factor of four. As Khazenly continues on its track of rapid growth during 2022, the company will also provide support for geographic expansion.

Merchants may expand and scale their businesses with the assistance of Khazenly's streamlined and technology-driven platform, high-caliber and experienced team, and network of industry-leading partners. Younes stated, "It gives me great pleasure to announce that our seed funding round was successful. This paves the way for us to expand on our previous achievements and establish Khazenly as a regional leader in fulfilment and logistics as we create the future of e-commerce in Egypt and beyond."

" As a direct result of our commitment to providing ever-evolving solutions, we are on the verge of seeing a significant increase in the number of customers we serve in Egypt. We would like to take this opportunity to extend a warm welcome to our lead investors, Arzan Venture Capital and Shorooq Partners, and we look forward to working with them as well as all of our other investors during this very exciting time. We are quite pleased with everything that we have accomplished to this point, and we are very excited about the near future.

Since its founding in 2021, Khazenly has developed into the partner of choice for an ever-increasing number of merchants, including some of Egypt's most exciting companies, operating in a variety of markets, including the apparel and clothing, electronics, home accessories, and fast-moving consumer goods (FMCG) sectors. The amount of gross merchandise value that Khazenly has already processed is in the eight-digit range, and the company's platform assists customers with more than 16,000 different types of self-service operations.

Khazenly intends to continue expanding its portfolio of data-driven products, such as its flagship Mobile Dark Stores. These stores improve the experience of merchants by predicting which products should be warehoused in accordance with market demand, and they also improve the experience of customers by guaranteeing a prompt delivery window.

According to Laith Zraikat, a partner at Arzan Venture Capital, " The Khazenly team has demonstrated the ability to not just execute and deliver outstanding results, but to also offer innovative products and solutions that allow brands and merchants to sell more products to more customers, more frequently, and in more locations – contributing to wider economic growth and development."

According to Tamer Azer, a partner at Shorooq Partners, the expansion of e-commerce around the world, particularly in the wake of the disruptions caused by the pandemic, has demonstrated that fulfilment truly is what makes the world go round.

" It also gives millions of people and businesses more power and makes it possible for them to reach clients all over the world as part of a marketplace that is becoming increasingly global," he said.

"We are thrilled to be working with Khazenly and its stellar team, as we firmly believe that their products and services have the potential to drive forward the fulfilment industry in Egypt and the wider region, by ensuring that the world keeps turning for both buyers and sellers. This is why we are so excited to be working with Khazenly and its stellar team. To be a part of their journey is something that we are quite excited about.