Egypt’s YFS will get $7M to scale its on-demand logistics and supply enterprise throughout MENA – •

On-demand supply within the Center East and North Africa is estimated to succeed in $47 billion by 2030. In its largest and fastest-growing economic system, Egypt, many platforms function in several segments of e-commerce and logistics whereas serving companies and prospects.

At the moment, a kind of firms, Yalla Fel Sekka (YFS), whose enterprise includes constructing a community of darkish shops and micro-warehouses throughout Egypt, has secured a $7 million Collection A spherical.

YFS was based by Khashayar Mahdavi and Yasmine Abdel Karim in 2020, simply earlier than the pandemic struck and buyer behaviour shifted towards needing sooner deliveries attributable to pandemic-induced lockdowns.

With elevated buyer exercise, e-commerce firms in North Africa sought to undertake trending fashions equivalent to fast commerce pioneered by Gopuff, Gorillas, and Flint. However in contrast to the West, Egypt’s e-commerce infrastructure isn’t able to accommodate the loopy demand and chaos that fast commerce brings.

It’s one of many causes Mahdavi and Abdel Karim began YFS. On a name with •, the founders stated whereas figuring out a important hole within the regional market: the necessity for near-instant deliveries, YFS has assembled a distributed community of small mini-warehouses and darkish shops, the place companies can retailer the products very near their prospects to make sure fast deliveries.

Right here’s how the platform works in a nutshell. It’s a B2B2C supply logistics play the place the corporate integrates to the backend of a shopper, say a grocery store, so every time a buyer makes an internet order, it picks up the order from a darkish retailer constructed to maintain its purchasers’ merchandise and makes the supply. 

The platform additionally supplies a broad fleet and darkish retailer and micro-warehouse administration serving companies throughout a number of verticals, together with groceries, pharmacies and e-commerce. 

“Having the ability to marry operational excellence and innovation with the expertise to carry down your price and have productiveness positive factors is what units us aside,” stated Khashayar Mahdavi, co-founder and chief technique officer to •.

“And due to our financial and finance background, we’ve at all times been tremendous targeted on unit economics. In order that’s what we’ve tried to realize right here, bringing innovation into this house with a concentrate on productiveness and unit economics, and having this distributed logistics providers to have the ability to serve our prospects extraordinarily rapidly.”

YFS has a fleet of 1,000 lively drivers of bikes and vans, with greater than 3,000 on a waitlist. These drivers make 10,000 orders day by day, stated CEO Abdel Karim, including that the corporate’s gross merchandise quantity is rising at a month-to-month fee of 20% and buyer retention fee above 90%.

She additionally stated YFS has accomplished two million deliveries throughout 5 cities in Egypt — Cairo, Giza, Alexandria, Mansoura and Tanta — all of the whereas being gross margin constructive, all in 18 months.

Hundreds of thousands of small companies in Egypt are simply coming on-line for the primary time. However for many of them, fulfilling orders stays a problem. YFS sees this phase as its subsequent batch of consumers, though it has predominantly served massive purchasers equivalent to Spinneys, Vezeeta, Jumia and Midday.

“We’re engaged on additionally serving a number of totally different companies and even SMEs. We’ve got a really superior expertise that can simply combine with anybody. And that’s additionally a key benefit for us as a result of we may also help SMEs come on-line and assist with their logistics arm whereas they concentrate on the product,” she stated.

The founders, who’ve financial backgrounds working in funding banking and oil and fuel, obtained $2.5 million as seed cash from Flybridge Capital and I Squared Capital. These traders backed the corporate once more on this spherical, together with lead investor DisruptAD, ADQ’s enterprise platform and Kuwait-based Kharafi Group.

YFS will likely be deploying the brand new funding to broaden its presence in cities throughout Egypt and the MENA area. Abdel Karim stated the corporate would additionally broaden on its darkish retailer administration because it appears to be like to construct 20 to 40 darkish shops within the coming 12 months,

For Mahdavi, now that the corporate has a proof of idea, it’ll enter a strong progress part.

“What’s essential to say is something that has to do with fast commerce or on the spot supply requires a brand new type of infrastructure on the bottom to be near your prospects, expertise, operations,” he stated. All of that’s radically totally different from the kind of infrastructure we noticed after we weren’t coping with fast commerce. However now that is what it’s all about for YFS, to grow to be the principle participant and the chief of providing these logistic providers for commerce.”


Leave A Reply

Your email address will not be published.