Dubai start-up Shorages raises $700,000 in new funding to fuel expansion

The investment will be used to build more warehouses, expand hiring and boost it developer team

Rayan Osseiran, chief executive of Shorages. The company is also working on a free-zone warehousing solution that would reduce the cost of shipping for their brands. Photo: Shorages

Shorages, a Dubai-based e-commerce fulfilment start-up, raised $700,000 in a seed funding round that it will use to build more warehouses in the UAE and increase hiring.

The financing, led by London-based Mayfair Holdings along with a number of other angel investors and serial entrepreneurs, aims to help global brands expand their presence in the GCC market, the company said in a statement on Wednesday.

It is "time-consuming and costly for direct-to-consumer brands to set up a local operation", said Rayan Osseiran, chief executive of Shorages, adding that the company plans to build fulfilment and distribution services needed for a "quick and cost-effective springboard into the market".

The delivery and logistics market in the UAE has grown significantly over the past few years, buoyed by the rapid expansion of online shopping, which was accelerated by the Covid-19 pandemic.

The UAE freight and logistics market is projected to reach $31.41 billion in 2026, from $19.65bn in 2020, driven by the consistent growth of e-commerce across the region as well as rising international trade, Mordor Intelligence data showed.

Quote
We have made it our mission to build the fulfilment and distribution services needed for a quick and cost-effective springboard into the market
Rayan Osseiran, chief executive of Shorages

Meanwhile, the country's e-commerce retail market surged 53 per cent annually to hit a record $3.9bn in 2020, accounting for 8 per cent of the overall retail market, according to the Dubai Chamber of Commerce and Industry. E-commerce licences issued by the emirate jumped 63 per cent in the first half of 2021, the Department of Economic Development said.

Shorages is also working on a free-zone warehousing solution that would reduce the cost of shipping for their brands, it said, adding that it is looking to expand its developer team to boost its order fulfilment and inventory management systems.

The start-up's storefront integration services are offered across several brands, including Amazon, Noon, eBay and Square Space, according to its website.

Launched in 2019, Shorages is an alumnus of the Mohammed bin Rashid Innovation Fund and the Startup Bootcamp Accelerator.

Updated: January 12th 2022, 1:14 PM