Egyptian-founded eCommerce fulfilment company, Flextock, has raised a whopping $3.25 million pre-seed round two months after graduating from Y Combinator.
This is quite a feat as the startup was founded in September 2020 and officially launched in January 2021. From past startup raises, this is one of the largest pre-seeds ever recorded in the African startup ecosystem, and also the largest in the Middle East and North Africa (MENA) region.
It shouldn’t be too surprising, as the startup’s co-founder and CEO, Mohamed Mossaad stated that there was more to come during an $850,000 pre-seed raise in March.
Egyptian VC Foundation Ventures, Y Combinator, MSA Capital, CRE Ventures, Alter Global, Jameel Investment Management Company (JIMCO), B&Y Ventures Partners, and Access Bridge Ventures all invested in this round.
Angel investments were gotten from an anonymous Sequoia Capital scout, investors in the Gulf Cooperation Council (GCC) region, and digital freight forwarder and custom broker, “Flexport”.
Mossaad told TechCrunch that the funding would spur the company’s ambition to capture a large portion of the MENA region’s $25 billion eCommerce logistics market. The company’s vision is to strengthen its presence in Egypt before the year ends.
Flextock’s eCommerce fulfilment services manage operations like warehousing, delivery, and logistics for eCommerce companies to ease the burden of these needs and enable effective scaling of business activities.
This leap by Flextock might reveal the viability of Africa’s eCommerce fulfilment services. On the Nigeria eCommerce scene, for instance, fulfilment services have experienced a slow adoption due to several blind spots.