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Wednesday, 5 May 2021

Flextock seals record pre-seed funding

An Egyptian logistics player just set a regional record for pre-seed funding: Logistics startup Flextock has closed a USD 3.25 mn pre-seed investment round, just two months after graduating from Y Combinator’s winter batch, according to TechCrunch.

This is the largest ever pre-seed round managed by a MENA startup, and exceeds the USD 3 mn raised by Dayra, a fellow Egyptian startup and Y Combinator graduate, in March.

Who’s in? Egypt-based VC firm Foundation Ventures, Y Combinator, MSA Capital, CRE Ventures, Alter Global, Jameel Investment Management Company (JIMCO), B&Y Ventures Partners, and Access Bridge Ventures have all invested in the company. Flextock also secured angel investment from an undisclosed Sequoia Capital scout, GCC investors, and San Francisco-based customs brokerage company Flexport.

The company is only four months’ old: Flextock was founded last September and launched in January by Mohamed Mossaad (LinkedIn) and Enas Siam (LinkedIn), and helps clients manage e-commerce and fulfillment operations including warehousing, logistics, delivery, and collection. It's currently active only in Egypt and has more than 100 merchants signed up to its platform. The company claims it is growing 25% each week.

Regional ambitions: It is planning to use the funding to strengthen its market presence in Egypt, invest in technology and recruitment, and expand regionally before the end of 2021.

ALSO IN STARTUPLAND-

It’s good to be a nano-lender in Egypt: Egypt’s first nano-lender Kashat has been seeing some growth, with 3k new downloads and adding 2.5k new accounts to its platform in the past month, co-founder Sumair Farooqui told Asharq Business yesterday in an interview (watch, runtime: 6:32). He also touched on the company’s plan to use an alternative algorithm-based credit scoring system to provide credit to unbanked businesses. Kashat, which offers small productive facilities of between EGP 200-1.5k, landed seed investment from Cairo Angels late last month.

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