SOUTH AFRICA – TUNL, a parcel shipping platform, has secured US$1 million in pre-seed funding from notable investors, including Founders Factory Africa, Digital Africa Ventures, E4E Africa, and Jozi Angels.
The company intends to utilize the funds to expand its operations in South Africa, the primary market, and initiate operations in other significant emerging African economies. It asserts that its services can help e-commerce enterprises achieve substantial savings of 50% to 80% on international shipping costs.
Established in 2022 by CEO Matthew Davey and COO Craig Lowman, the company was born out of Davey’s experience as the managing director of a Dutch firm importing engineering supplies from South Africa to Europe, where he identified a critical challenge prompting the inception of this business.
“Our pricing model is transparent and democratized. Our goal is to ensure that every business, regardless of size, has an equal opportunity to boost international sales by minimizing shipping expenses as much as possible,” Davey said.
“It’s crucial to support merchants in their success, as a single expensive shipping option at checkout can prompt customers to abandon their carts or reluctantly pay extra.”
TUNL’s strategic approach involves forming partnerships with major courier services like UPS and FedEx, negotiating favorable rates, and subsidizing shipping costs for small- and medium-sized enterprises (SMEs) by 50% to 75%. This commitment to transparency and cost reduction enables TUNL to empower businesses of all sizes, fostering international sales and growth.
The e-commerce platform has been operational for two years, deriving revenue from a percentage cut on each transaction. Its diverse products include backpacks, trendy shoes, DIY supplies, books, nanofiber materials, high-performance springs, furniture, musical instruments, and non-perishable items such as cosmetics.
The recently secured funding is earmarked for bolstering the platform’s presence in South Africa and facilitating its launch in other pivotal African and emerging markets. The infusion of funds will play a crucial role in improving both sales processes and the onboarding procedure for merchants.
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