On Friday, October 25, 2024, Pargo, a South African eCommerce logistics startup, announced its expansion into Egypt after securing $4 million in funding.
The funding round was led by 3Capital Ventures, Endeavor, SAAD Investment Holdings, and UW Ventures. With this investment, Pargo has launched its collect and return services at over 500 Pargo Points in Egypt, aiming to accelerate growth in the country’s burgeoning eCommerce sector.
The Egyptian eCommerce market has experienced significant growth and is projected to reach $9.05 billion in 2024, with expectations to double to $18.04 billion by 2029. This growth is fueled by rising internet penetration, improved infrastructure, and an increasing number of online shoppers, with a compound annual growth rate (CAGR) of 14.80% expected during the forecast period.
Lars Veul, CEO of Pargo, recognized the potential of the Egyptian market, stating that this expansion is a vital step towards building the region’s largest smart logistics network.
Despite the rising adoption of eCommerce in Africa, a GSMA study reveals challenges in logistics and delivery services, such as damaged goods, insufficient delivery capacity, and slow delivery times. These issues can drive up costs and reduce revenue for online sales.
Veul emphasized that Pargo aims to provide affordable eCommerce delivery solutions to enhance access for online shoppers across Africa, addressing the struggles faced by many eCommerce companies.
Founded in 2015 by Lars Veul and Derk Hoekert, Pargo offers eCommerce delivery solutions through its network of over 4,000 tech-enabled Pargo Points, connecting companies like Amazon, Bash, and Jumia with online shoppers.
Pargo initially piloted its services in Egypt in 2023, establishing 150 Pargo Points to test its offerings with various eCommerce companies and their customers. The startup also introduced a “Cash on Collection” payment option during this phase.
Looking ahead, Pargo plans to expand to 7,000 pickup points across the region by 2026 while continuing to collaborate with local businesses and brands.
