South Africa’s Pargo expands to Egypt with $4 million fresh Investment – Fintech News Egypt

Pargo Expands to Egypt, Launches ‘Collect and Return’ Service at Over 500 Points

October 2024 — South Africa’s leading e-commerce logistics company, Pargo, has announced its expansion into Egypt with the official launch of its Collect and Return service, available across 500 Pargo Points. These collection points, established in partnership with local outlets like Fawry, Circle-K, and Basata stores, aim to provide consumers with a more convenient and cost-effective way to receive, return, and send packages.

This expansion follows a $4 million funding round, led by prominent investors 3Capital Ventures (formerly Allan Gray), Endeavor, SAAD Investment Holdings, and UW Ventures. The fresh capital is earmarked to accelerate Pargo’s operations in Egypt’s rapidly growing e-commerce market and to enhance its logistics network in response to surging demand for affordable, reliable delivery solutions.

Pargo’s Innovative Solution Tackles Delivery Challenges in Africa

Pargo’s logistics solution stands out by addressing the limitations of traditional home delivery services in regions like Africa, where poor infrastructure, traffic congestion, and low home delivery reliability increase costs and frustrate online shoppers. By leveraging its network of Pargo Points within vetted retail stores, Pargo enables consumers to pick up or return their packages conveniently, significantly reducing missed deliveries and consolidating multiple orders per drop, which lowers delivery costs.

Founded by Lars Veul and Derk Hoekert in Cape Town, Pargo has created South Africa’s largest tech-enabled delivery network, with over 4,000 Pargo Points nationwide. The company has worked with prominent brands like Amazon, Bash, and Jumia, reaching over 10 million online shoppers.

Egypt Market Entry and Key Client Partnerships

Pargo’s entry into Egypt aligns with the country’s expanding e-commerce market, driven by leading platforms like Noon, Jumia, and Amazon. Noon, a popular fashion and lifestyle e-commerce platform in the Middle East, is one of Pargo’s first clients in Egypt, giving its customers the option to collect orders from nearby Pargo Points.

“Egypt is one of the most exciting e-commerce markets in Africa, and we are thrilled to bring our collect and return services here,” said Lars Veul, CEO of Pargo. “Our mission is simple: to create an affordable e-commerce delivery solution for the 500 million online shoppers across Africa, an underserved demographic with vast potential. This expansion is a significant milestone in building the largest smart logistics network in the region.”

Strong Pilot Results and New Payment Options

Pargo conducted a pilot program in Egypt in 2023, launching 150 Pargo Points for a select group of e-commerce companies and online shoppers. The pilot was met with an overwhelmingly positive response, prompting Pargo to introduce a “Cash on Collection” payment option, designed specifically for Egypt’s predominantly cash-based economy.

Ambitious Growth Plans for the Region

Looking ahead, Pargo aims to expand to 7,000 pickup points across the Middle East and North Africa by 2026, furthering partnerships with local businesses and brands. “Our focus is to provide an unmatched shopping experience by bringing our Collect and Return solution to more Egyptian consumers,” said Abdelmalek Shamsi, Pargo’s Managing Director in Egypt. “With partners like Noon and a strong pipeline of interested companies, we are well-positioned to capture this market’s tremendous potential.”

Pargo’s strategic expansion and focus on convenient, cost-effective e-commerce logistics solutions mark an important step toward meeting Africa’s rising demand for efficient delivery services, positioning Pargo as a transformative player in Egypt’s—and the region’s—e-commerce landscape.

    Share:

Leave a Reply

*