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South African e-commerce logistics company Pargo has raised US$4 million in funding to support its expansion into Egypt, where it has launched with over 500 tech-enabled “Pargo Points”.
Founded in 2015 in Cape Town by Lars Veul and Derk Hoekert, Pargo is a smart logistics company that offers e-commerce delivery solutions through its network of over 4,500 tech-enabled Pargo Points. So far, it has connected leading companies like Amazon, Bash and Jumia with over 10 million online shoppers.
The company has raised a US$4 million funding round led by 3Capital Ventures (previously part of Allan Gray), Endeavor, SAAD Investment Holdings and UW Ventures, which it will use to enhance its services and scale its network.
Most immediately, it funds Pargo’s expansion into Egypt with the launch of its Collect and Return services in the country, now available at over 500 Pargo Points, including Fawry, Circle-K and Basata stores. Noon, the leading fashion and lifestyle platform in the Middle East, is one of the first major e-commerce companies making use of 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 Returns services here,” said Veul, CEO of Pargo. “Our mission is simple: create an affordable ecommerce delivery solution to increase access to the 500 million 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 toward building the largest smart logistics network in the region.”
Pargo initially launched a pilot in Egypt in 2023, opening up 150 Pargo Points to test the solution by offering its solution to a small number of e-commerce companies and their online shoppers, with better than expected adoption. It also introduced a new “Cash on Collection” payment option, tailored for Egypt’s predominantly cash-based economy.
Looking ahead, Pargo plans to expand to 7,000 Pickup Points across the region by 2026, while continuing to partner with leading local businesses and brands.
“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,” said Abdelmalek Shamsi, Pargo’s managing director in Egypt.