Zip24 from Dubai raises $ 1.2 million for its SaaS logistics products
Zip24, a Dubai-based SaaS logistics startup raised $ 1.2 million in a round led by Britain’s Sturgeon Capital, he said. MENBytes today. The deal also included participation from Hayaat Group, Teqvisory, Robert Kay and other angel investors from the region and the UK.
Founded earlier this year by former Amazon (MENA) executives Muzaffar Karabaev and Asif Keshodia, Zip24 currently offers two products; Shipox, a delivery management software, and Storfox, a warehouse management system. The startup already serves more than 100 e-commerce merchants, retailers, logistics services, consumer goods companies and restaurants, in more than 20 countries.
Its co-founders have extensive experience in e-commerce and logistics. Muzaffar is a serial entrepreneur who has founded and run internet companies in Uzbekistan, UK and UAE. Prior to founding Zip24, he was CEO of Wing, an on-demand e-commerce logistics startup he co-founded in 2016. Wing was acquired by Amazon MENA (known at the time as Souq.com) at the end of 2017. Asif Keshodia was previously Group CFO of Souq.com and Regional CFO of Amazon MENA (after the acquisition of Souq by MENA).
Both have spent considerable time working closely with merchants and other stakeholders in the regional e-commerce ecosystem, and understand their weaknesses. To solve the logistics issues, they teamed up to launch Zip24.
“With our product line from execution to the last mile, we will ultimately enable our customers to help any e-commerce and on-demand delivery business become more agile. We have already helped our customers fulfill and deliver millions of orders over the past 12 months, ”said Muzaffar Karabaev, Co-Founder and CEO of Zip24, in a statement. “We aim to become the main catalyst of logistics technology for our customers in the next phase of our growth. “
Asif Keshodia, Co-Founder and Executive Chairman of Zip24, said: “Our mission is to deliver innovative and rapidly deployable logistics SaaS stacks to online merchants, logistics operators and other customers. We help these customers improve their experience and achieve operational cost savings.
“With our technology, they are reducing their dependence on expensive delivery and fulfillment service providers, who sometimes take a third of their merchants’ income away. You name it – predictive forecasting with AI / ML tools, route optimization and cross-border tracking. Our solution can do it all, and at a fraction of the cost of their existing service providers. We are looking to save our customers’ income, ”he added.
Shipox, Zip24’s delivery management software comes with a white label website (for team and customers), white label driver app, and real-time driver and vehicle tracking. The way it works is that the company integrates it at the point of sale to share order information, distribute tasks to drivers as they receive orders, allow drivers to view and accept tasks , access optimized routes and deliver orders. Businesses can track order status throughout this process and send alerts to customers when various stages are complete. They can also ask customers to submit comments and access different types of reports from the dashboard.
The online software can be integrated using the API or its out-of-the-box plugins for Shopify, Magento, WordPress, and Opencart. It’s free for businesses with up to 150 monthly orders and uses a cost per order model to bill paying customers. A business with 1,000 monthly orders, according to pricing information available on its website, pays $ 100 per month. The price keeps dropping as the volume increases. For 100,000 monthly orders, for example, Shipox charges a monthly fee of $ 3,000.
Storfox, Zip24’s second product helps businesses, including online retailers, marketplaces, offline retailers and third-party logistics companies, manage their warehouse, sourcing, inventory and fulfillment. It comes with an account management system, billing, and integration with Shipox for shipping. Pricing isn’t available, but apparently like Shipox, Storfox also offers free and paid tiers.
Zip24 plans to use the funds to improve its product and technology and expand its sales and marketing team, primarily at its operating base in Tashkent, Uzbekistan. It also plans to have a field presence in the UK by the end of the year to support its direct sales there.
Kiyan Zandiyeh, CEO of Sturgeon Capital, said, “Sturgeon is proud to lead this round for zip24. We find the combination of a founding team of seasoned entrepreneurs and operators tackling a significant problem in underserved and growing markets, to make the opportunity particularly attractive, and we are very much looking forward to work with the company.