How Morocco-based Freterium is looking to improve logistics for firms in the Middle East
In logistics, it is imperative to ensure communication between a number of players. This Morocco-based company connects all elements of the logistics ecosystem through its own digital twin ecosystem.
As a consultant, Mehdi Cherif Alami worked closely with logistics companies. During this time, he noticed a number of obstacles along the way.
“I quickly realised that the space was riddled with inefficiencies that could be solved with technology. While logistics isn't a particular passion of mine, I'm always looking for complex
problems to solve, and logistics is definitely a complex sector,” he tells YourStory Gulf Edition.
Taking a leap of faith, in 2020, he set up Freterium—an all-in-one generation transport management system for companies to manage their surface transportation. Along with his colleague Omar El Kouhene, the company quickly made waves in the Middle East, bagging a seed round of funding of $4 million from investors like Partech, Y Combinator, Flexport, Swiss Founders Fund, and Outlierz Ventures.
Its services are being used by 3000 people to date.
Freterium dashboard (Source: Freterium platform)
Kicking off operations
In logistics, it is imperative to ensure communication between a number of players.
“Logistics is a collaborative industry, but communication between all the different players - logistics departments, warehouse departments, truckers, suppliers, vendors, and customers - can be a real challenge," says Mehdi.
Freterium connects all elements of the logistics ecosystem through its own digital twin ecosystem. This system is collaborative allowing companies and even customers to interact on the platform. Its first pilot project was with Modeles—a snacks business based in Morocco in 2019. It took the firm nearly one year after this pilot to come up with its first commercially viable product.
Soon after its fundraising, it extended operations to Dubai. "Dubai is ideally located to help us further expand into the markets we're choosing," he explained. "And with the help of AstroLabs, we're looking at deeper penetration into the GCC and Middle East."
It also caters to a variety of industries and companies with different processes. "We decided to build a platform that is flexible enough to address all these use cases - FMCG, furniture, retail, agriculture, mining…" says Mehdi.
The platform is flexible enough to address all types of shipments from those transported by road and to the last mile to customers. Its expertise is in emerging markets, where distribution channels are more complex and traditional trade is more prevalent.
Services from Freterium work on a software-as-a-service (SaaS) subscription model, with subscriptions available on a monthly, quarterly, or annual basis, depending on the volumes of operations. Pricing can range from $20 to $100.
The Dubai Chamber indicates that UAE's ecommerce market value is expected to hit $9.2 billion by 2026. “We will keep investing on our product and people. We want to put our hands in as many companies as possible,” says Mehdi. Besides this, it is also looking at raising additional capital.
Edited by Akanksha Sarma