Zenfulfillment and Alaiko merge

Zenfulfillment and Alaiko merge to form the largest e-commerce fulfillment provider in Europe.

by Benyi Heider – 3 Min. read time, last updated 13.11.2024

Prime for Everyone: Zenfulfillment and Alaiko Introduce the Next Generation of E-Commerce Fulfillment

November 13, 2024 – Zenfulfillment, one of the leading tech-enabled e-commerce fulfillment providers for online retailers, and Alaiko, a top software provider in e-commerce operations, today announced their merger, creating one the largest e-commerce fulfillment providers in Europe.

This merger boosts the combined annual throughput to over 10 million parcels from more than 300 online retailers, with an e-commerce sales volume exceeding half a billion euros. The newly combined company, which will operate under the name “Zenfulfillment,” promises to set new benchmarks for speed, reliability, and efficiency in online retail by combining Zenfulfillment’s logistics expertise with Alaiko’s operating system, a software solution that automates e-commerce operations.

A Success Story: Zenfulfillment Succeeds with Just 500k Against More Than 200 Million Euros of Venture Capital

“From the start, our vision was to create a real alternative to providers like Amazon by empowering independent shops with a shipping and returns service that rivals Prime in reliability, speed, and price—or even surpasses it,” explains Daniel Werner, Managing Director of Zenfulfillment, who founded the company in 2016 with a former colleague at just 21 years old. A year after its founding, Zenfulfillment secured its first and only funding round, raising 500,000 euros, backed by XPRESS Ventures, the company builder of logistics provider FIEGE.

Despite the e-commerce boom during the COVID-19 pandemic and competitors in Germany alone raising more than 200 million euros in growth capital, Zenfulfillment has emerged as the leading fulfillment provider. Over the past 18 months, Zenfulfillment has seen its parcel volume grow by more than 90 percent. With a laser focus on the needs of both online retailers and end customers, the company has significantly influenced the market. A key driver of this success is the Zenrush one-day delivery service, introduced in 2023, which provides Amazon Prime-like delivery speeds for purchases from independent online shops.

Johannes Humpert, Managing Director of Zenfulfillment, explains: “Zenrush is revolutionizing online shipping in the same way PayPal once revolutionized online payments. As a reliable, cross-platform standard, Zenrush integrates seamlessly with popular e-commerce systems like Shopify. The merger with Alaiko is accelerating our growth significantly, helping us establish Zenrush as a category-defining service and set new standards for shipping and return experiences.”

Management Team Expansion

“This strategic merger strengthens our competitive advantage, creates immense synergies, and exponentially accelerates our joint growth,” says Moritz Weisbrodt, Managing Director of Alaiko, who, along with Alaiko co-founder Gabriel Thomalla, will join Zenfulfillment’s management team. “Integrating Alaiko’s leadership into the new management structure is a crucial step in combining the expertise of both companies and advancing our shared vision,” adds Johannes Humpert.

Ready to scale quickly with Millions in Funding from Lead Investor Moguntia Capital

The transaction is backed by a multi-million euro financing round from both existing and new investors, led by renowned supply chain investor Moguntia Capital. “This merger brings together two highly complementary, tech-enabled e-commerce fulfillment providers, combining their operational excellence and platform strengths. Together, we are setting new standards for e-commerce fulfillment for online retailers,” explains Malte Janzarik, Managing Partner of Moguntia Capital. Zenfulfillment is pursuing an ambitious growth strategy: by establishing Zenrush as the leading one-day delivery brand, the company aims to capture a significant share of the European market by 2030.

“Our goal is to enable every retailer, regardless of size, to turn shipping into a competitive advantage. We achieve this through fast, free premium shipping, hassle-free returns, and world-class customer service,” says Daniel Werner. “Our team continues to make breakthroughs in building a tech-driven logistics infrastructure for modern online retail, making every delivery a predictable, transparent, and—above all—seamless experience.”

About Zenfulfillment:

Zenfulfillment was founded in 2016 by Daniel Werner and Denis Ciccale, with the goal of providing fast and reliable access to online-purchased products worldwide. With Zenrush®, the one-day delivery service, the company has established itself as a leading provider. Zenfulfillment uses modern software and robotics-based automation techniques and has developed profitably with almost no growth capital. Customers such as Les Lunes, JP Performance, and Bears with Benefits benefit from its fulfillment solutions and logistics expertise. // www.zenfulfillment.com

About Alaiko:

Alaiko is Europe’s most innovative provider of software solutions in e-commerce operations for leading D2C brands. The Alaiko Operating System enables online shops to implement transparent and automated processes in warehousing and logistics. Alaiko was founded in 2020 in Munich by Moritz Weisbrodt and Gabriel Thomalla, alongside investors NFQ and Harald Braunstein. Over 150 successful e-commerce brands, including Hey Marly, The Female Company, and Gitti, are scaling with Alaiko’s fulfillment solution. // www.alaiko.com

About the Transaction:

The merger was supported by M&A advisors CCAP Investments & Advisory, along with legal counsel from V14, Poellath, and WTS Global.

Curious to see how Alaiko and Zenfulfillment can take your fulfillment processes to the next level?

Get in touch

FAQ

Why did Alaiko decide to do the merger?

  • Fragmented E-Commerce Fulfillment / Logistics Market: The logistics market is highly fragmented, and characterized by intense pressure on current margins. Numerous similar players across Europe and the US are struggling with profitability, despite substantial venture capital investments.
  • Market Consolidation Necessity: Given the challenging circumstances, there is a compelling need for consolidation within the market. This environment fosters opportunities for mergers and acquisitions as strategic moves.
  • Merger Consideration: For these reasons, we evaluated the option of merging with existing players as a viable alternative to pursuing a standalone SaaS business model.
  • Thorough Evaluation Process: Over a period of six months, we conducted a comprehensive screening of potential merger partners. The evaluation criteria included founder compatibility, business models, assets, and other relevant factors.

Conclusion: Ultimately, we determined that merging with Zenfulfillment is the optimal choice and presents an exceptional opportunity for Alaiko. This merger positions us to become Europe’s leading e-commerce fulfillment service provider, offering the best solutions in the market.

Why did Alaiko merge with Zenfulfillment?

  • Optimal Customer Outcomes: The combination of Alaiko’s leading software capabilities with Zenfulfillment’s outstanding operational expertise results in the best possible outcomes for our customers. This merger ensures reliable and sustainable long-term logistics operations, covering the entire journey from customer communication to fulfillment operations.
  • Complementary positioning: Zenfulfillment is the most complementary player in the market, aligning perfectly with Alaiko’s strengths
  • Strengths:
    • Alaiko: Specializes in an asset-light model with a primary focus on software development.
    • Zenfulfillment: Concentrates on logistics operations, including fulfillment and shipping, with a high degree of hardware and process automation. Additionally, Zenfulfillment benefits from the backing of Fiege as a strategic logistics investor.
  • Operational Efficiency: Zen’s emphasis on operations and an intelligent shipping strategy enables them to offer a highly competitive and profitable service of superior quality, economically outperforming current VC-financed competitors.
  • Complementary Founders: The founders of Alaiko and Zenfulfillment bring complementary expertise to the table.

What are the main benefits for Alaiko’s (future) offering?

  • Enhanced Product Offering: The merger allows us to combine the strengths of both companies, resulting in the best product for e-commerce shops in the market.
  • Advanced Warehouse Operations: We will leverage advanced warehouse operations, featuring a high degree of hardware and process automation, along with a robust logistics operating system.
  • ZenRush®: Integration of ZenRush will enhance our delivery speed and efficiency.
  • Price stability: The merger makes us much more confident to offer you price stability in  times of minimum wage increaseswhile maintaining superior operational quality.
  • Direct Influence on Warehouse Operations: We will have direct control over warehouse operations, ensuring higher efficiency and responsiveness.
  • Improved Communication: There will be seamless direct communication between customers and the warehouse, enhancing transparency and service quality.

What is the long-term vision for Alaiko & Zenfulfillment?

We are returning to our roots and recommitting to our original mission: to become Europe’s largest and most digitized e-commerce fulfillment provider that offers the best post-purchase experience for our customers and their customers.

What happens with the Alaiko OS / software offering?

  • Integration of Zenfulfillment Offering: The Alaiko OS Software will be seamlessly integrated into the Zen offering, maintaining its current functionality and benefits.
  • Operational benefits on top of existing Alaiko OS software experience: A key driver of the merger between Alaiko and Zenfulfillment is the integration of Zenfulfillment’s superior operational logistics setup with Alaiko’s advanced operating software. This combination allows us to provide our joint fulfillment customers with a “best-of-both-worlds” solution while ensuring that our customers experience no changes to the strong Alaiko software experience.
  • Enhancement of Alaiko OS with ZenRush®: Alaiko OS will be enhanced by incorporating ZenRush as an additional consumer-facing module, solidifying Alaiko’s position as the best software in the market.

How does the new management of the joined company look like?

  • Founders‘ Continuation: All four founders from both companies, Alaiko & Zenfulfillment will remain on board and have committed themselves to the joined company.
  • New Management Team: The new management team will consist of the four founders, ensuring a highly complementary setup
Benyi Heider Director Marketing

Alaiko Posts
Back to all articles