Khazenly, an on-demand digital storage and fulfilment company based in Cairo, has successfully raised $2.5 million in seed funding.
Leading regional venture capitalists Arzan Venture Capital, which specialises in innovative, early-stage firms, and Shorooq Partners, which focuses on seed-stage tech investing across MENAP, co-led the funding round. Other backers included Camel Ventures, Averroes Ventures, and an assortment of angel investors.
The proceeds will be utilised to expand Khazenly’s product and service offerings and to double the size of its current facilities. As Khazenly continues its strong growth trajectory in 2022, the regional expansion will also be supported.
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Why The Investors Invested
The startup has generated considerable traction since it was founded. Since its founding in 2021, Khazenly has become the partner of choice for a rapidly expanding number of merchants, including some of Egypt’s most intriguing brands, spanning a variety of industries: clothes & clothing, electronics, home items, and FMCG. With companies such as XPRS by Tradeline, Mozare3, and many more benefiting from Khazenly’s technology-based fulfilment services, Khazenly has already managed an eight-digit Gross Merchandise Value, and its platform helps customers in over 16,000 self-service activities.
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.
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“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 also empowers millions of people and businesses and enables them to reach customers the world over, as part of an increasingly 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 one of the driving factors of the Egyptian economy and is projected to increase by 30 percent by 2022, fueled by a rise in the number of younger consumers and rising incomes. In Egypt, the official e-commerce market is expected to reach 140 billion EGP ($7.5 billion) in 2022.
A Look At What The Startup Does
Khazenly, which was founded in the middle of 2021 by Mohamed Younes (CEO), Osama Aljammali (CCO), Mohamed Montasser (CXO), and Ahmed Dewidar (CTO), is influencing the future of e-Commerce in Egypt. The Company’s user-friendly, cost-effective, and transparent omnichannel solution assists merchants in expanding their companies and accelerating the digitalization of their fulfilment processes.
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Khazenly’s fully-digitized platform is a one-stop-shop for the entire spectrum of fulfilment services, including warehousing, cross-docking, transportation, delivery, and cash collection. Its end-to-end platform enables retailers and e-Commerce entrepreneurs to digitally optimise their fulfilment processes, whether they are selling online (B2C), through retail shops (B2B), marketplaces, internationally, or a combination of these channels.
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. I am delighted to announce our successful seed funding round, meaning we can build on our success and position Khazenly as a regional leader in fulfilment and logistics, as we shape the future of e-Commerce in Egypt and beyond.
“We are on the cusp of tremendous client growth in Egypt due to our constantly innovative solutions. It is the perfect time to welcome our lead investors Arzan Venture Capital and Shorooq Partners; we look forward to working with them and all our other investors at this exciting time. We are very proud of our achievements to date, and are thrilled about the immediate future.”
Khazenly intends to continue expanding its portfolio of data-driven products, such as its flagship Mobile Dark Stores, which improve the merchant experience by forecasting the products to be warehoused in accordance with market demand, while also enhancing the shopper experience by guaranteeing a prompt delivery window.
Khazenly logistics Khazenly logistics
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh