South African e-commerce logistics company Pargo has secured US$4 million in funding to fuel its expansion into Egypt, which has launched more than 500 tech-enabled Pargo Points.
Founded in 2015 in Cape Town by Lars Veul and Derk Hoekert, the logistics startup offers smart logistics and delivery solutions to e-commerce businesses through a network of over 4,500 Pargo Points.
The company has already facilitated deliveries for top brands like Amazon, Bash, and Jumia, reaching more than 10 million online shoppers.
The US$4 million funding round was led by 3Capital Ventures (formerly part of Allan Gray), along with Endeavor, SAAD Investment Holdings, and UW Ventures. The capital will be used to further enhance the logistics startup’s services and grow its network.
The company’s most immediate focus is expanding its services into Egypt, where it has launched its Collect and Return services at over 500 Pargo Points in popular retail chains, including Fawry, Circle-K, and Basata stores.
Noon, one of the largest e-commerce platforms in the Middle East, is among the first major companies to utilize its services in Egypt.
Pargo previously ran a pilot program in Egypt in 2023, establishing 150 Pargo Points to test its solution with a select group of e-commerce companies.
The results exceeded expectations, with strong adoption of its services. The pilot also introduced a “Cash on Collection” payment option, specifically designed for Egypt’s cash-reliant economy.
Looking to the future, the logistics startup aims to scale its operations to 7,000 Pickup Points across the region by 2026, while continuing to collaborate with local businesses and leading brands.
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