Flextock, one of many 10 African startups from the latest Y Combinator winter batch, has bagged a powerful pre-seed spherical simply two months after commencement.
The five-month-old firm, which helps shoppers and companies handle e-commerce and achievement operations — from warehousing and logistics to supply and money assortment — has closed a $3.25 million pre-seed funding.
Because it stands, this can be a document excessive for the MENA area, which additionally had a record-high two months in the past in fellow Egyptian and YC winter batch startup Dayra. The fintech firm raised $3 million in debt and fairness.
Mohamed Mossaad and Enas Siam based Flextock in September 2020. Nonetheless, the corporate didn’t launch till January 2021. After we covered the company in March, it had simply raised $850,000 however CEO Mossaad made it clear that extra was nonetheless to come back.
The traders on this spherical embrace Egyptian VC Basis Ventures, Y Combinator, MSA Capital, CRE Ventures, Alter World, Jameel Funding Administration Firm (JIMCO), B&Y Ventures Companions and Entry Bridge Ventures. The corporate additionally obtained angel investments from an unnamed Sequoia Capital scout, traders within the GCC area and Flexport.
Flextock at present serves the Egyptian market. It leverages proprietary software program to supply retailers end-to-end e-commerce achievement and logistics options on demand. Since its launch, the corporate claims to have signed greater than 100 retailers to its platform, with hundreds of stock-keeping models (SKUs). The corporate additionally says it’s rising 25% week-on-week.
“Within the final two months we launched completely different merchandise to assist retailers develop their manufacturers extra effectively,” Mossaad informed TechCrunch.” We’ve constructed varied partnerships with completely different logistics providers suppliers available in the market to supply retailers an E2E expertise, quadrupled the variety of retailers and doubled the dimensions of our crew.”
Flextock needs to seize a big portion of MENA’s $25 billion e-commerce logistics market, and Mossaad says the funding will assist with that ambition. The corporate plans to place the funding into strengthening its presence in Egypt, know-how, recruitment and regional growth earlier than the top of the 12 months.
Within the MENA area, Trella is one other Egyptian logistics firm backed by YC. The accelerator has now invested in 4 logistics and digital freight centered startups, together with Nigeria’s Kobo and SEND, ever because it efficiently backed Flexport in 2014.
Regardless of having a worldwide operation, the freight forwarder is testing the waters within the MENA area — on the Flexport web site, there’s a job for a Partnerships Supervisor, Turkey & Center East. Though Flexport has freight forwarding and customized companions within the area, its curiosity in deepening attain in MENA might need spurred it to look at different alternatives. Flextock which offers e-commerce achievement seems to be one following the worldwide freight supplier’s “strategic funding” within the Egyptian firm.
CEO Mossaad stated that having Flexport onboard not solely serves as a powerful vote of confidence to the corporate’s development potential however will assist it construct a regional interconnected community of e-commerce logistics providers suppliers by leveraging their huge community of companions world wide.
That stated, will probably be fascinating to see how this funding performs out within the foreseeable future.
For Mazen Nadim, the managing accomplice at Basis Ventures, Flextock’s e-commerce achievement and logistics play will probably be key to realizing the regional dominance it craves.
“We acknowledge the huge alternative in logistics introduced by the rise of e-commerce within the area,” he stated. “Flextock is constructing the underlying infrastructure in order that any e-commerce participant can scale their operations on-demand.”
Flextock’s funding continues the collection of seven-figure pre-seed rounds which have change into extra prevalent within the African tech scene. At least six startups (together with Flextock) have raised $1 million or extra on this spherical up to now 12 months. They embrace Egypt’s Zedny, Cassbana and Flick; and Nigeria’s Okra and Autochek, with the latter elevating the biggest pre-seed funding but in Africa at $3.4 million.