Egypt-based logistics startup Bosta has secured $6.7 million in a Series A round led by Amman-based global VC Silicon Badia.
Additional participants in the funding round included 4DX Ventures, Plug and Play Ventures, Khwarizmi Ventures, and Wealthwell VC, as well as other regional and global investors.
Bosta, in February 2020, announced an undisclosed seven-figure Series A from the DPD group and Fawry. With this new funding, the total amount of investment raised by the startup is $9.2 million.
Founded in 2017 by Mohamed Ezzat and Ahmed Gaber, the startup is a provider of a full-service next-day delivery and logistics solution to e-commerce businesses across Egypt.
Since an online business’s success or lack thereof is dependent on reliable last-mile delivery service, Bosta helps 3,000 local e-commerce businesses to deliver their products on schedule. It also handles exchange shipments, customer returns, and cash collection.
With a 95 percent success rate, Bosta currently delivers 300,000 parcels every month on average.
According to the CEO of Bosta, Mohammed Ezzat, the logistics company is planning to Saudi by the end of 2021 with the possibility of expanding into more markets across the entire GCC afterward.
In addition to expanding to Saudi, Bosta will use the latest funds to grow its business in Egypt. It aims to dispatch over 15 million parcels in Egypt over the next two years.
In a statement, Ezzat added, “Solving the last mile delivery problem for e-commerce companies is very crucial for the e-commerce business to grow in Egypt and the Middle East.
As a company, we are committed to helping the e-commerce sector grow by providing them with speedy delivery, quality, and exceptional service—all while making sure our prices are one of the most competitive to help them with their tight unit economics and help them grow a profitable business.”
The startup banks on its network of freelance drivers who are paid for every successfully delivered order. The first and last mile is done by this fleet and the middle-mile (for inter-city couriers) by rented vans.
In a statement, Dr. Fawaz H. Zu’bi, the founder and CEO of Silicon Badia, said, “E-commerce has always had amazing potential in our region but was always being held back by something whether payments, logistics, market fragmentation, or customer adoption.
We are excited to finally see companies like Bosta emerge to tackle some of these issues and help e-commerce realize its full promise and potential in a region that has now ‘turned on’ digitally.”
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