Shiprazor Bags $2.65M to Build AI-Powered Logistics for African Merchants

Sahil Affriya, Shiprazor Founder & CEO

Cape Town-based logistics startup Shiprazor has raised $2.65 million in seed funding, led by pan-African venture capital firm Norrsken22. The raise brings Shiprazor’s total funding to $3.3 million.

Other participants include AAIC, E4E, and Tremis Capital, as well as angel investors, including senior leaders at Google.

Shiprazor was founded in May 2023 by Sahil Affriya, a former VC who wanted to build a more connected logistics experience for South African merchants. The platform lets online merchants access a network of courier partners through a single integration with Shopify and WooCommerce, compare delivery options, and route shipments based on cost and speed.

The company says it has processed over 1.5 million deliveries and connected merchants to more than 20 courier partners since launching. It was previously backed by Launch Africa Ventures and the founders of companies, including Peach Payments and Omnibiz.

Africa’s logistics market is fragmented — the African Development Bank estimates transport costs on the continent are 75% higher than the global average. This means managing multiple courier accounts, dealing with inconsistent service, and experiencing frequent failed deliveries for online merchants.

“South African merchants are resilient — they’ve navigated load shedding, currency volatility, and now rising logistics costs driven by global oil prices,” Affriya said. “But they shouldn’t have to fight their own fulfilment infrastructure on top of all that.”

The fresh capital will go toward expanding Shiprazor’s courier network across South Africa, including in areas with limited coverage, and building AI tools for merchants. The first of those tools is an address verification product designed to cut the rate of failed deliveries caused by inaccurate address data.

Norrsken22 closed its debut $205 million fund in 2023, targeting growth-stage companies with typical ticket sizes around $10 million. This seed is a smaller deal, though the fund had indicated it might put smaller amounts into early-stage companies when the opportunity was right.

Nivesh Pather, Investment Principal at Norrsken22, said: “Shiprazor is building the intelligent infrastructure layer that African merchants have been missing, and they’re doing it with a deep understanding of how this market actually works.”

Source: Condia