South African parcel shipping platform TUNL has successfully secured $1 million in pre-seed funding from notable investors, including Founders Factory Africa, Digital Africa Ventures, E4E Africa, and Jozi Angels. Co-founded in 2022 by CEO Matthew Davey and COO Craig Lowman, TUNL has quickly emerged as a key player in the African logistics landscape. The funding injection is set to propel the company’s expansion efforts within South Africa, its primary market, and facilitate entry into other significant emerging African economies.
Origins and Vision
Founders Matthew Davey and Craig Lowman conceived TUNL based on Davey’s firsthand experience as the managing director of a Dutch firm dealing with engineering supplies imported from South Africa to Europe. The venture addresses a critical challenge identified during this period, laying the foundation for TUNL’s innovative approach to parcel shipping.
Funding and Expansion Plans
With the newly secured funds, TUNL aims to scale its operations, solidify its presence in South Africa, and initiate operations in key African markets. The company emphasizes that its services have the potential to revolutionize international shipping costs for e-commerce enterprises, promising savings ranging from 50% to 80%.
Transparent and Democratized Pricing
TUNL sets itself apart with a transparent and democratized pricing model. The company envisions providing equal opportunities for businesses of all sizes to enhance international sales by minimizing shipping expenses. According to Lowman’s spokesperson, this approach is pivotal in supporting merchants’ success and preventing cart abandonment due to high shipping costs.
Impressive Growth and Market Impact
Since its inception, TUNL has experienced remarkable growth, boasting a 35% month-on-month increase. The platform currently has 700 merchants in its “shipping club,” a testament to its growing influence in the market. In 2023 alone, South African merchants utilizing TUNL exported goods exceeding R24 million (~$1.3 million), dispatching over 11,000 parcels internationally. TUNL’s plans include forging partnerships with similar marketplaces and platforms across Africa, building on existing collaborations with Ivorian startup ANKA and global logistics giant DHL.
Diverse Product Offerings and Revenue Model
Operating for two years, TUNL generates revenue through a percentage cut on each transaction. The platform accommodates a diverse range of products, from fashion items like backpacks and shoes to DIY supplies, books, nanofiber materials, high-performance springs, furniture, musical instruments, and non-perishable items such as cosmetics.
Future Enhancements and Utilization of Funding
The recently secured funding will be instrumental in enhancing TUNL’s platform, streamlining sales processes, and optimizing the merchant onboarding procedure. As the company strengthens its foothold in South Africa and ventures into new markets, the infusion of funds is expected to play a crucial role in propelling TUNL to new heights in the evolving landscape of African logistics and e-commerce.