After a successful launch in Saudi Arabia, Shorages, a fulfillment startup based in the Gulf Cooperation Council, announced that it has raised $1 million in a pre-series A round.
With its network of fulfillment locations, Shorages gives retailers in the GCC access to the infrastructure they need to start selling online. It is equipped to receive inventory and ship orders both domestically and internationally for the merchants they partner with, thanks to fulfillment centers in the UAE and, more recently, KSA.
Shorages is a multichannel logistics provider with the tools necessary to support merchants in starting and growing their businesses through both B2B and B2C channels. Shorages has helped a number of brands distribute their products both online and offline thus far.
In addition, the business makes use of economies of scale to negotiate favorable terms with suppliers and then offers those terms to its retailers.
The business gives developing its technology top priority. Shorages’ order fulfillment and warehouse management system serves as a central operating system for retailers. Merchants have full visibility into the status of their orders, stock levels, and overall sales performance when they log onto the platform. The program easily interfaces with marketplaces like Amazon and Noon in addition to B2C channels like Shopify, Sala, and WooCommerce. Furthermore, the organization integrates its proprietary software into all of its fulfillment centers, enabling personnel to effectively handle inventory and process orders.
With plans to open more warehouses throughout the GCC, Shorages will mainly use this most recent round for international expansion. The company intends to facilitate brand expansion into the Kingdom by creating a bridge between the UAE and KSA, given that KSA is already a well-established entity.
The company has set its sights on becoming a key player in the GCC’s 3PL ecosystem. Shorages’ CEO, Rayan Osseiran, adds: “We’ve witnessed firsthand the attractive position of the GCC as a new hub for brands to expand to. We aim to capitalise on that positioning by acting as the de facto logistics infrastructure for those companies. We are excited to welcome Joa Capital on board with us to help drive the company’s vision forward.”
The round was led by Joa Capital as part of their S3 Ventures Fund. Its partner, Abdulrahman Almousa, noted: “Joa Capital proudly supports Shorages in their recent Pre-Series A funding round, underscoring our commitment to fostering innovative companies that are set to revolutionise the commerce landscape in the GCC and beyond. This investment aligns with our mission to build long-term partnerships with visionary entrepreneurs, aiming to amplify their impactful solutions across the region and foster a more interconnected and vibrant future.”.
