E-commerce fulfillment startup Shorages raises $700K SEED
The emerging UAE-based startup helping E-commerce brands maneuver GCC markets raises its SEED round.
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UAE-based E-commerce fulfillment startup Shorages has successfully raised $700K in its SEED funding round led by Mayfair Holdings, the family office of Mr. Sudhir Maheshwari, alongside other angel investors and serial entrepreneurs.
Launched in 2019, Shorages offers brands the digital, regulatory, and warehouse infrastructure needed to unlock online sales in the GCC. Its fulfillment centers around the UAE are prepared to receive inventory and dispatch orders across the GCC region. By providing seamless fulfillment services Shorages is banking on empowering established local and regional brands as well as setting the stage for international players to tap into the GCC market.
Funding in the E-commerce sector in MENA observed more than 230% YoY growth in 2021 to account for more than 15% of all capital deployed across industries. As more investors seem interested in later-stage deals, the E-commerce sector in 2021 observed a conservative deployment of Early-Stage (<$500K) investments in 2021, accounting for a mere 22% of all transactions closed in the sector. Nonetheless, Early-Stage funding rounds closed over the past year were reflective of a positive E-commerce future, where ventures are integrating FinTech, Fleet Management, and AI technologies to stream the E-retailing of products across industries. Startup success stories that highlight this include Early-Stage rounds closed by Q-commerce startup Egypt-based Appetito, UAE-based car care startup MySyara, Jordan-based E-commerce builder Matrix, and UAE-based fleet management SaaS startup Fleetroot.
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The UAE-based fulfillment startup adopts an efficient method of work with seamless integration in third-party websites. First, Shorages receives inventory in one of their fulfillment centers in the UAE. Once done, Shorages will integrate their order fulfillment system with a brands’ website. After that, once an order is received on the website, Shorages’ fulfillment team will pick and pack orders before dispatching them with the last-mile courier for delivery across the GCC. The company offers this service across multiple order types such as Amazon FBA, FBM, Noon, and website orders. In addition to the above, the company acts as a distributor for certain key brands they partner with. Shorages CEO Rayan Osseiran adds: “At Shorages, we have realized how time-consuming and costly it is for direct-to-consumer brands to set up a local operation. As such, we have made it our mission to build the fulfillment and distribution services needed for a quick and cost-effective springboard into the market”.
Over the past two years, Shorages supported several brands launch and scale their online business at a time when a lot of brands were transitioning towards e-commerce. They recently secured agreements to partner with multiple highly recognized international brands for 2022 including a US-based brand aggregator that has achieved $500M+ in revenue abroad. The latest seed round will primarily be used for local expansion and hiring as the company plans to launch more warehouses in the UAE. In particular, the company is working on a freezone warehousing solution that would reduce the cost of shipping for their brands. Shorages is also looking to expand its team of developers to further grow its order fulfillment and inventory management systems. Mayfair Holdings’ Sudhir Maheshwari shared their enthusiasm for the UAE-based team, “Our investment into Shorages was a result of our conviction in this disruptive retail model as well as our belief in the team to execute upon this vision”. Shorages is also a MBRIF and Startup Bootcamp Accelerator alumnus.
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