Last-mile delivery startup Bosta raised $1.4 million in a Series A round, according to an anonymous source close to the deal. The round was led by European parcel delivery giant DPDgroup. Egyptian fintech company Fawry also participated in the round.
The Cairo-based company launched in 2017 and provides different types of last-mile delivery solutions to ecommerce businesses in Egypt. Especially, businesses with next-day delivery. Bosta handles exchange shipments, customer returns and cash collection. The startup claims to have a 97 percent successful delivery rate.
Bosta operates using an Uber-like asset-light model with all the drivers on its network being freelancers who earn money for every completed parcel delivery.
Bosta plans to use this investment to grow further and lead the ecommerce delivery market in the country. Furthermore, the startup plans to explore the option of expanding to other regional markets and with a new partner like DPDgroup it could help realize this vision.
DPDgroup is a subsidiary of LaPoste, an international delivery network operated by the French state-owned postal service. It is Europe’s second-largest operator in the courier, express and parcel (CEP) industry, delivering over 5.2 million parcels daily.
Bosta is the European company’s first investment in Egypt. However, DPDgroup has been investing in logistical businesses in different parts of the world, including an $85 million investment in Southeast Asian last-mile logistics startup Ninja Van.
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