Khazenly, a Cairo-based digital fulfilment and warehousing platform on demand, has announced its $2.5 million seed fundraise.
The funding round was co-led by leading regional venture capitalists Arzan Venture Capital – which specialized in innovative, early-stage startups, and Shorooq Partners – which focused on seed-stage tech funding across MENAP. Other investors included Fintech-focused fund – Camel Ventures, Averroes Ventures, and various angel investors.
Proceeds will be used to develop Khazenly’s products and services, and quadruple its existing facilities. Khazenly’s rapid growth will be supported by the support of geographical expansion.
Khazenly, a company founded by Mohamed Younes (CEO), Osama Almammali (CCO), Mohamed Montasser(CXO) and Ahmed Dewidar (“CTO”) in mid-2021, is shaping Egypt’s future e-Commerce. The Company’s convenient, affordable, transparent, omnichannel solution helps merchants grow their businesses and supercharge the digitalization of their fulfilment processes.
Via its simple and transparent subscription-based packages, Khazenly’s fully-digitized platform is a one-stop-shop solution for the full spectrum of fulfilment services, from warehousing to cross-docking, transportation, delivery, and cash collection services. The platform’s end-to–end functionality allows retailers and e-Commerce entrepreneurs to digitally optimize fulfilment processes when selling online (B2C), through retail stores (B2B), on marketplaces, cross border, or a combination thereof.
Mohamed Younes, Co-Founder and Chief Executive Officer commented: “At Khazenly, our simplified, technology-fueled platform, high-calibre experienced team, and network of market-leading partners help merchants grow and scale. As we build the future of e-Commerce, I am thrilled to announce our successful seed financing round. This will allow us to build on our successes and position Khazenly in fulfillment and logistics as a regional leader.
“We are on the cusp of tremendous client growth in Egypt due to our constantly innovative solutions. This is the right time to welcome Arzan Venture Capital, Shorooq Partners and our other investors. We look forward to this exciting time working with them as well as all of our investors. We are very proud of our achievements to date, and are thrilled about the immediate future.”
Since inception in 2021, Khazenly has become the partner of choice for a rapidly growing number of merchants, including some of Egypt’s most exciting companies, across diverse industries: apparel & clothing, electronics, home accessories and FMCG. With brands such as XPRS by Tradeline, Mozare3, and many more benefiting from Khazenly’s technology-based fulfilment services, Khazenly has already handled an 8 digit-figure of Gross Merchandise Value, and its platform supports clients on 16,000+ self-service activities.
Khazenly plans to continue expanding its portfolio of data-driven products, such as its flagship Mobile Dark Stores, which elevate the merchants’ experience by forecasting the products to be warehoused in line with market demand, while also enhancing shopper experience by ensuring a prompt delivery window.
Laith Zraikat, Partner at Arzan Venture Capital, commented: “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.
“With an increased focus globally on building more resilient supply chains and a wider societal shift to e-commerce, our investment in Khazenly proves that the logistics tech and fulfilment sector is still up for disruption. We are excited to partner with the founders and the rest of the team to help grow Khazenly and bring their services to more businesses and consumers.”
Tamer Azer, Partner at Shorooq Partners, added: “The rise of e-commerce globally, especially following the disruptions seen in the pandemic, has shown that fulfilment really does make the world go round. It empowers millions and businesses, and allows them reach customers all over the world as part of an ever-growing global marketplace.
“We are thrilled to be working with Khazenly and its stellar team, as we firmly believe their products and services have the capacity to drive forward the fulfilment industry in Egypt and the wider region, by making sure the world keeps turning for both buyers and sellers. We couldn’t be more excited to be a part of their journey.”
E-Commerce is a driving force in the Egyptian economy. It is expected that it will grow by 30% by 2022 due to a rising number of shoppers and rising incomes. In 2022, the Egyptian e-commerce market will be 140 billion EGP (US$7.5 Billion).