fbpx

Pargo Expands to Egypt with 500 Pickup Points and $4M in Funding

Pargo Expands to Egypt with 500 Pickup Points and $4M in Funding

South African e-commerce logistics company Pargo has officially expanded into Egypt, marking a significant step in its mission to support e-commerce growth across Africa. Pargo, which operates a network of over 4,500 tech-enabled pickup points across its home country, launched its Collect and Return services at over 500 locations in Egypt, including Fawry, Circle-K, and Basata stores. The expansion is backed by a $4 million funding round aimed at scaling its logistics infrastructure and growing its presence in the region.

Pargo’s innovative logistics model focuses on addressing the key challenges in traditional home delivery services, such as poor infrastructure, traffic congestion, and missed deliveries due to customer unavailability. By offering convenient parcel collection and return options at vetted retail stores, Pargo provides an affordable alternative that cuts delivery costs for retailers and enhances convenience for online shoppers. The company was founded in Cape Town by Lars Veul and Derk Hoekert with a vision to make e-commerce logistics more efficient across the continent.

“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 Lars Veul, CEO of Pargo. “Our mission is simple: create an affordable e-commerce delivery solution to increase access to the 500 million online shoppers across Africa that e-commerce companies currently struggle to service.”

Pargo has already established the largest tech-enabled delivery network in South Africa, servicing leading online retailers such as Amazon, Bash, and Jumia. The company’s expertise in logistics and its growing network of pickup points have made it a crucial partner for businesses looking to expand their reach in Africa. This success now serves as a foundation for Pargo’s expansion into Egypt, a market experiencing rapid e-commerce growth fueled by platforms like Noon, Jumia, and Amazon.

Noon, a major fashion and lifestyle platform in the Middle East, has become one of Pargo’s first clients in Egypt. Noon customers can now opt to collect their orders from any of Pargo’s pickup points, offering them greater flexibility and convenience. Pargo’s services have been well-received during a pilot phase in 2023, where the company launched 150 pickup points and introduced a “Cash on Collection” option tailored for Egypt’s predominantly cash-based economy.

The recent $4 million funding round, led by 3Capital Ventures, Endeavor, SAAD Investment Holdings, and UW Ventures, will further enable Pargo to scale its operations in Egypt and beyond. This strategic investment will allow the company to expand its network to 7,000 pickup points by 2026 and continue partnering with local businesses to provide seamless delivery solutions.

Abdelmalek Shamsi, Pargo’s Managing Director in Egypt, highlighted the company’s focus on enhancing the customer experience: “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.”

With its solid logistics foundation and commitment to making e-commerce more accessible, Pargo is not only facilitating the growth of e-commerce in Egypt but also aiming to build the largest smart logistics network in the region. This expansion is a major step towards realizing Pargo’s vision of providing online retailers across Africa with a more efficient and cost-effective way to reach millions of online shoppers.

If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.