South African smart logistics company, Pargo, has successfully secured $4 million in funding to expand its operations into Egypt, marking a significant step in its bid to become a leading player in Africa’s e-commerce logistics landscape. Pargo, which was founded in Cape Town in 2015 by Lars Veul and Derk Hoekert, specializes in e-commerce delivery solutions through its extensive network of over 4,500 tech-enabled Pargo Points. These points have connected major companies like Amazon, Bash, and Jumia to over 10 million online shoppers.
The latest funding round was led by 3Capital Ventures, Endeavor, SAAD Investment Holdings, and UW Ventures, and is intended to help Pargo enhance its logistics services and scale its operations. A major portion of the funding will support Pargo’s expansion into Egypt, where it has launched its Collect and Return services at over 500 locations. These include popular stores such as Fawry, Circle-K, and Basata, with Noon, the leading fashion and lifestyle platform in the Middle East, among the first e-commerce platforms to utilize Pargo’s services in Egypt.
“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 goal is to create an affordable e-commerce delivery solution that opens access to the 500 million online shoppers across Africa that are currently underserved by logistics providers. This expansion into Egypt is a key step toward building the largest smart logistics network in the region.”
Pargo initially tested the waters in Egypt with a pilot program launched in 2023. The pilot introduced 150 Pargo Points and provided delivery solutions to a small selection of e-commerce companies and their customers. The positive response and higher-than-expected adoption encouraged the company to accelerate its expansion efforts. As part of its tailored approach to Egypt’s market, which remains heavily cash-based, Pargo introduced a “Cash on Collection” payment option, a move that proved popular among local consumers.
Looking forward, Pargo aims to significantly scale its network in the region, with plans to increase its Pargo Points to 7,000 by 2026. The company is also seeking to strengthen its partnerships with local businesses and e-commerce platforms, further positioning itself to capitalize on Egypt’s booming online shopping sector.
“Our focus is to provide an unmatched shopping experience for Egyptian consumers by expanding our Collect and Returns solution,” said Abdelmalek Shamsi, Pargo’s managing director in Egypt. “With partners like Noon and a strong pipeline of interested companies, we are confident in our ability to capture the immense potential of this market.”
As Pargo continues to grow, its expansion into Egypt highlights the company’s broader ambitions to dominate the e-commerce logistics space in Africa, offering solutions that cater to the region’s unique challenges and opportunities.
