South African e-commerce logistics company Pargo raises US$4 million to expand into Egypt

The company has launched with over 500 tech-enabled “Pargo Points” in the country

South African e-commerce logistics company Pargo has officially launched its services in Egypt, supported by over 500 tech-enabled “Pargo Points” across the country. This launch follows a successful pilot in 2023, which saw 150 Pargo Points go live and a new “Cash on Collection” payment option being introduced.

Founded in 2015 in Cape Town by Lars Veul and Derk Hoekert, Pargo is a smart logistics company that offers e-commerce delivery solutions through its network of over 4,500 tech-enabled Pargo Points. So far, it has connected leading companies like Amazon, Bash and Jumia with over 10 million online shoppers.

Now present in South Africa, Namibia, Botswana, Zambia and Egypt, Pargo is rapidly expanding its footprint across the continent. To date, it has raised over US$25 million in funding from 3Capital Ventures (previously part of Allan Gray), Endeavor, SAAD Investment Holdings, UW Ventures and other prominent investors.

“Egypt is one of the most exciting e-commerce markets in Africa, and we are thrilled to bring our Collect and Returns services here,” said Veul, CEO of Pargo. “Our mission is simple: create an affordable ecommerce delivery solution to increase access to the 500 million online shoppers across Africa that e-commerce companies currently struggle to service. We see huge potential in the Egyptian market, and this expansion is a major step toward building the largest smart logistics network in the region.”

Pargo’s Collect service allows online shoppers to collect their parcels at a convenient Pargo Point near them, while its Returns service enables them to easily return unwanted items. Both services are fully integrated with the e-commerce checkout process, providing a seamless shopping experience.

With a population of over 110 million and a rapidly growing middle class, Egypt presents a significant opportunity for e-commerce companies. However, the country's vast size and underdeveloped logistics infrastructure make it challenging for them to reach consumers efficiently and cost-effectively.

Pargo’s network of Pargo Points addresses this challenge by providing e-commerce companies with a dense and accessible network of collection and return points. This network includes a variety of local businesses, such as Fawry, Circle-K and Basata stores, as well as partnerships with leading e-commerce platforms like Noon.

“Our focus is to provide an unmatched shopping experience by bringing our Collect and Returns solution to more Egyptian consumers. With partners like Noon, and a strong pipeline of interested companies, we are well-positioned to capture this market’s tremendous potential,” said Abdelmalek Shamsi, Pargo’s managing director in Egypt.

Pargo plans to expand to 7,000 Pickup Points across the region by 2026, while continuing to partner with leading local businesses and brands.

The above is the detailed content of South African e-commerce logistics company Pargo raises US$4 million to expand into Egypt. For more information, please follow other related articles on the PHP Chinese website!