Funding and Expansion: TUNL, the South African parcel shipping platform, secures $1 million in pre-seed funding from investors, including Founders Factory Africa, Digital Africa Ventures, E4E Africa, and Jozi Angels. The funding will propel TUNL’s expansion within South Africa and its entrance into key African and emerging markets.
Identifying Shipping Challenges: Founded in 2022 by CEO Matthew Davey and COO Craig Lowman, TUNL addresses the widespread issue of high shipping costs, particularly affecting smaller businesses in emerging markets. The cross-border shipping challenges cost African businesses an estimated $50 billion annually.
Empowering Merchants During the Pandemic: During the pandemic, TUNL observed a recurring issue among South African merchants, where shipping costs sometimes exceeded the value of their products. TUNL’s solution involves offering multiple shipping options during checkout to enhance flexibility and potentially improve conversion rates.
Impressive Growth and Impact: Since its launch, TUNL has grown 35% month-on-month, with over 700 merchants part of its “shipping club.” In 2023, TUNL’s merchants shipped over 11,000 international parcels, representing exports from South Africa worth more than R24 million (~$1.3 million). The platform has transformed businesses, with merchants adding new employees and experiencing growth.
Future Ventures and Focus: Beyond South Africa, TUNL plans to partner with similar marketplaces and platforms on the continent. The startup, having a diverse product range, is exploring opportunities such as wine (alcohol) shipping and is in discussions with a prominent wine subscription business in South Africa.
Strategic Use of Funding: TUNL will utilize its seed funding to enhance sales and streamline the onboarding process for new merchants. The focus is on transitioning from customer support-assisted onboarding to a more self-service approach.
Innovative Shipping Solutions: TUNL’s innovative approach includes setting up an economy courier service to the USA and forming partnerships with global courier companies like UPS and FedEx. This strategy aims to reduce SMEs’ shipping costs by 50% to 75%.
Transparent and Democratized Pricing: TUNL’s pricing is transparent and democratized, ensuring that businesses of all sizes have an equal chance to convert overseas sales by minimizing shipping costs. The platform offers various shipping options, including an “economy” courier option with a starting shipping cost as low as $10 from South Africa to the USA.
Enhancing Conversion Rates: Providing faster shipping options with FedEx or UPS at a more reasonable cost, TUNL’s offerings enhance flexibility and potentially improve conversion rates for merchants. Prices vary based on destination and weight.
Conclusion: TUNL is dedicated to fostering success for merchants, enabling them to grow internationally and tap into larger consumer markets overseas. The platform’s strategic partnerships, transparent pricing, and diverse shipping options position it as a key player in revolutionizing global e-commerce shipping.