With the introduction of its Collect and Return services, which are currently offered at more than 500 Pargo Points, including Fawry, Circle-K, and Basata stores, Pargo, one of the top e-commerce logistics companies in South Africa, is thrilled to announce its entry into Egypt.
Before starting this expansion, Pargo raised $4 million in capital. By strengthening its logistics network and better meeting the growing demand for convenient and reasonably priced e-commerce delivery solutions, the funding will help Pargo expand in Egypt’s rapidly expanding e-commerce market.
The problems with conventional home delivery services are addressed by Pargo’s distinctive logistics solution. Most African cities suffer from poor infrastructure, heavy traffic, and people who are frequently away from home. These issues result in a high rate of missed deliveries, which raises logistics costs and irritates online shoppers.
Pargo guarantees that they never miss a delivery and that customers can pick up, return, or send their items whenever it’s convenient for them by using a vast network of Pargo Points, which are situated in carefully chosen retail establishments. Pargo drastically lowers delivery costs by combining several orders into a single drop.
Derk Hoekert and Lars Veul founded Pargo in Cape Town. With more than 4000 Pargo Points spread throughout the nation, they have so far established the biggest tech-enabled delivery network in South Africa, linking tens of millions of online shoppers with top retailers like Amazon, Bash, and Jumia.
Egypt’s e-commerce market is growing quickly, so Pargo’s entry into the country comes at a crucial moment. Major e-commerce sites like Noon, Jumia, and Amazon are driving demand for online shopping, making the need for effective, reasonably priced delivery services urgent.
One of the first significant e-commerce businesses to use Pargo’s services in Egypt was Noon, the top fashion and lifestyle platform in the Middle East. Convenience and flexibility are increased as Noon customers can now pick up their orders from the Pargo Point of their choice.
“Egypt is one of the most exciting e-commerce markets in Africa, and we are thrilled to bring our collect and return services here,” said Lars Veul, CEO of Pargo. “Our mission is simple: create an affordable e-commerce delivery solution to increase access to the 500m online shoppers across Africa that e-commerce companies currently struggle to service. We see huge potential in the Egyptian market, and this expansion is a major step towards building the largest smart logistics network in the region.”
In 2023, Pargo started a pilot program in Egypt, which has produced remarkably encouraging outcomes. Offering their solution to a select group of e-commerce businesses and their online customers, they established 150 Pargo Points to test the solution, and the uptake was better than anticipated. Additionally, they smoothly implemented a new payment option called “Cash on Collection” which was designed for Egypt’s primarily cash-based economy.
By 2026, Pargo hopes to have 7,000 pickup locations throughout the area, all the while maintaining its partnerships with top local companies and brands.
Abdelmalek Shamsi, Pargo’s Managing Director in Egypt, says, “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.”
A successful $4 million funding round led by 3Capital Ventures (formerly Allan Gray), Endeavor, SAAD Investment Holdings, and UW Ventures preceded Pargo’s entry into Egypt. With the help of this funding, Pargo will be able to expand its logistics network and improve its services while also accelerating its growth throughout Egypt and beyond.
