TUNL, a parcel shipping platform based in South Africa, has successfully raised $1 million in pre-seed funding. Investors such as Founders Factory Africa, Digital Africa Ventures, E4E Africa, and Jozi Angels contributed to this funding round.
With a focus on aiding e-commerce merchants in cutting international shipping expenses by 50% to 80%, the platform intends to use the funding to bolster its presence in South Africa. Additionally, it aims to establish a strong foundation for entry into other vital African and emerging markets.
TUNL, a South African e-commerce startup, recently secured a significant boost with a $1 million pre-seed funding round. CEO Matthew Davey and COO Craig Lowman founded TUNL in 2022 as a result of a real-world difficulty Davey encountered while in charge of a Dutch company importing engineering materials from South Africa to Europe. This experience highlighted the immense hurdles and expenses involved in cross-border shipping, particularly for smaller businesses in emerging markets like South Africa.
The problem of exorbitant shipping costs in cross-border trade costs African businesses an estimated $50 billion annually, hindering their ability to expand and capitalise on global opportunities. TUNL identified that for many small and medium-sized South African merchants, shipping expenses sometimes exceeded the value of their products. Even with major courier services like DHL, UPS, and FedEx available, the costs remained a barrier.
To address this, TUNL established its own economy courier service in the USA and forged partnerships with global courier companies like UPS and FedEx. This initiative slashed shipping costs for SMEs by an impressive 50% to 75%, making international trade more accessible and affordable. Lowman emphasised the company's commitment to transparency and equalising opportunities for businesses of all sizes to tap into overseas markets.
Since its inception, TUNL has experienced substantial growth, expanding its "shipping club" to over 700 merchants and facilitating the shipment of more than 11,000 international parcels in 2023, valued at over R24 million (~$1.3 million). The platform caters to a diverse array of products, from fashion items like backpacks and footwear to specialised components, books, furniture, musical instruments, and cosmetics, showcasing South Africa's rich export potential. Although TUNL has yet to include wine shipments due to existing restrictions, they're exploring partnerships with major wine subscription businesses.
The startup's success resonates with its mission to empower merchants beyond South Africa's borders, enabling them to view the world as their marketplace. With a focus on using their seed funding to enhance sales and the onboarding process for new merchants, TUNL aims to streamline operations further. By transitioning to a more self-service onboarding approach, they seek to bolster efficiency and accessibility for businesses joining their platform.
As seen in their discussions with ANKA, an Ivorian startup and DHL partner, TUNL intends to extend its reach beyond South Africa by collaborating with comparable platforms and marketplaces throughout the African continent.
In a nutshell, TUNL's vision is not just about reducing shipping costs; it's about catalysing the growth of businesses internationally by democratising access to global markets and fostering an ecosystem where smaller merchants can thrive.
Credits: Image from TUNL, source article techcrunch.com
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