South African e-commerce logistics firm Pargo has secured $4 million in funding to facilitate its expansion into Egypt, where it has introduced over 500 tech-enabled “Pargo Points.” Established in 2015 in Cape Town by Lars Veul and Derk Hoekert, Pargo specializes in smart logistics, providing e-commerce delivery solutions through a network of more than 4,500 tech-enabled points. The company has successfully connected major brands such as Amazon, Bash, and Jumia with over 10 million online shoppers.
The recent funding round was led by 3Capital Ventures (formerly part of Allan Gray), along with contributions from Endeavor, SAAD Investment Holdings, and UW Ventures. This capital will be used to enhance Pargo’s services and expand its network. Most notably, it will support the launch of Pargo’s Collect and Return services in Egypt, now available at over 500 locations including Fawry, Circle-K, and Basata stores. Noon, a leading fashion and lifestyle platform in the Middle East, is among the first major e-commerce players to utilize Pargo’s services in Egypt.
“Egypt represents one of the most promising e-commerce markets in Africa, and we are excited to introduce our Collect and Returns services here,” stated Lars Veul, CEO of Pargo. “Our goal is straightforward: to create an affordable e-commerce delivery solution that improves access for the 500 million online shoppers across Africa that many companies find challenging to serve. We see significant potential in the Egyptian market, making this expansion a crucial step toward establishing the largest smart logistics network in the region.”
Pargo initially conducted a pilot program in Egypt in 2023, launching 150 Pargo Points to test its solutions with select e-commerce companies and their customers, achieving better-than-expected adoption rates. The company also rolled out a “Cash on Collection” payment option tailored for Egypt’s largely cash-driven economy.
Looking forward, Pargo aims to establish 7,000 Pickup Points throughout the region by 2026 while continuing to collaborate with prominent local businesses and brands.
“Our objective is to deliver an unparalleled shopping experience by extending our Collect and Returns solution to more consumers in Egypt. With partners like Noon and a robust pipeline of interested companies, we are well-positioned to seize this market’s immense potential,” remarked Abdelmalek Shamsi, Pargo’s managing director in Egypt.
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