Khazenly: Agility in Adapting to Logistics Market Trends
Updated 10/10/2023 8:00:00 AM
Arab Finance: Storing, shipping, and logistic services are crucial to the Egyptian economy, especially with the rapid growth of e-commerce in recent years. These services contribute to the growth of the Egyptian economy by creating job opportunities and increasing the flow of foreign currency into the country. Khazenly, a company that provides fulfillment and logistics services to online merchants, is one of the key players in this industry in Egypt.
In an interview with Arab Finance, Mohamed Younes, Co-Founder and CEO of Khazenly, discusses the wide range of services the company provides and sheds light on the role of technology in the warehousing and logistics industry. He also talks about how Khazenly has adapted to changes in the market and industry trends.
1- What inspired you to start Khazenly, and what were some of the challenges you faced in the early stages of the company?
The idea behind Khazenly came from one of the co-founders, who was inspired by the rapid growth in the e-commerce space and the pressing need for fulfillment and logistics services. Rapidly, Khazenly turned into a company seeking merchants' growth. Fulfillment and logistics services became one of the core enablers for growth, and the company introduced a whole portfolio of products to support our merchants in growth.
2- What are the key services that Khazenly offers, and how do they differentiate Khazenly from other warehousing and logistics companies?
Business-to-customer (B2C) fulfillment: This service is offered to online merchants who sell to individuals. Khazenly offers the receiving of the goods and storing them. Upon receiving the order, our warehouse team picks up the items, packs them, and ships the package to its final destination. Upon order delivery, we collect the cash on behalf of the merchant. We offer two kinds of agreements: we offer retailers transportation and distribution capabilities to allocate goods to their retail stores and the targeted channels.
Cross-Border Services: This service allows our merchants to expand their online presence in foreign territories. We help them obtain the full paperwork, approvals, and necessary certifications to allow the export of their goods. Merchants can do fulfillment and return locally while getting paid in foreign currency. We started launching this product in Saudi Arabia, and other countries will follow.
Commerce: This service enables the growth of our merchants by exposing their goods to additional sales channels, against a cut or discount of the goods’ value. Yet Khazenly completes the journey by fulfilling these orders and enabling the growth of the merchants. We initiated a pilot phase, exposing some of our merchants’ goods to drop-shipping and social selling networks.
Our key differentiator is that we combine our merchants’ growth programs with convenience through a tech-based merchant experience, allowing merchants to perform daily logistics operations at their fingertips. Our merchant experience provides data analytics and business insights to merchants, supporting our clients across their journey.
3- How did Khazenly adapt to changes in the market and industry trends over time?
Khazenly has stayed agile, continuously monitored, and adapted to market trends and technological advancements. We adapt our products, offerings, and services to meet evolving client demands and the industry’s best practices.
For instance, with the recent economic situation in Egypt, we came up with the idea of enabling cross-border services, allowing our merchants to tap into new markets, embracing the government’s mandates to increase exports, and supporting the flow of foreign currency into the Egyptian economy.
4- Who is your target audience? And how do you increase and sustain them?
Our primary target market is e-commerce entrepreneurs seeking to provide their customers with an unmatched experience through efficient fulfillment and logistics services.
We sustain and grow our merchant base through several programs that are tailored for their growth, including a signature experience, multi-channel real-time support, referral programs, and strategic partnerships with key industry players.
5- How do you offer your customers opportunities for growth and expansion?
Khazenly offers growth opportunities by scaling our services to meet clients' expanding demands, supporting the opening of new markets through our cross-border products, and opening new sales channels supported by our commerce products. Additionally, Khazenly provides merchants with valuable insights through data analytics that help them better understand and meet their customers' rising expectations.
6- Can you provide us with an overview of the company’s revenues and growth rate in the last year?
Since January 2022, the number of active clients has grown 20x, our revenues have grown almost 10x, and the number of orders has grown 22x. Additionally, we are super proud to have acquired and retained retailers with a reputable portfolio of international brands.
7- What areas does the company operate in? And what are the effects of the recent economic climate on your business?
Today, Khazenly primarily operates in Egypt, and we recently expanded our operations to the KSA, with plans to expand to more countries in 2024.
The recent economic climate has posed challenges, including fluctuations in currency exchange rates, which impacted consumer buying behavior and purchase power, ultimately affecting their sales and growth.
With these challenges comes a greater opportunity for Khazenly to better serve our clients. Our focus is to provide cost-effective solutions and to open new markets and channels to enable us to navigate these challenges effectively.
8- What role does technology play in Khazenly?
Technology is at the heart of everything Khazenly does. Our one-of-a-kind platform is helping Khazenly disrupt the logistics market in Egypt and the region. Our technology supports Khazenly in launching new products and services, boosting our merchant experience through ease and convenience, and optimizing and scaling the lifecycle of our operations.
9- What are some of the most important metrics that you use to measure the success of Khazenly?
At Khazenly, we are very proud of our client retention rates, order fulfillment accuracy, and delivery service level agreements.
10- Finally, what do you see as the future of the warehousing and logistics industry, and how is Khazenly positioning itself to succeed in that future?
I believe that it is inevitable that the logistics industry is headed toward autonomous operations through automation and robotics. Additionally, logistics companies are sitting on a mine of data that can be turned into actionable insights through data-driven products and upscaled to support merchants’ growth.
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