Egypt-based fintech startup Flextock has recently raised $3.35 million as pre-seed funding from the Y Combinator two months after graduation, according to the media. It is the largest pre-seed fund raised in the MENA region.
The investors in the round include Egyptian VC Foundation Ventures, Y Combinator, MSA Capital, CRE Ventures, Alter Global, Jameel Investment Management Company, B&Y Ventures Partners and Access Bridge Ventures. Flextock also received angel investments from an unnamed Sequoia Capital scout, investors from the GCC region and Flexport.
Mohamed Mossaad and Enas Siam founded Flextock in September 2020. It helps consumers and businesses to manage their ecommerce and fulfil various operations. The multiple functions range from warehousing and logistics to delivery and collection of cash.
This fundraising is a record high for the MENA region. It also had a record high in fellow Egyptian and YC winter batch startup Dayra in March 2021. Flextock raised $3 million in debt and equity. It is to note that the company did not launch until January 2021. In March, it had raised $850,000 and was hoping for more to come.
The fintech serves the Egypt market and leverages proprietary software to merchants who on-demand need end-to-end (E2E) ecommerce fulfilment and logistics solutions. Since January, Flextock has signed 100 merchants to its platform along with thousands of stock-keeping units (SKUs). It also stated that the growth week-on-week is 25 percent.
Flextock aims to use the funding towards capturing a large portion of MENA’s $25 billion ecommerce logistics market. It also plans to put the budget into strengthening its presence in Egypt, technology, recruitment and regional expansion before the end of 2021.