• South Africa-based e-commerce logistics startup Pargo has expanded into the Egyptian market after raising $4 million in investment, led by 3Capital Ventures, Endeavor, SAAD Investment Holdings and UW Ventures.
• Founded in 2014 by Derk Hoekert and Lars Veul, Pargo offers innovative delivery solutions with the aim of empowering e-commerce in Africa.
• As part of the expansion, Pargo has launched collect and return service points across the nation.

Press release:

Pargo, one of South Africa’s leading e-commerce logistics companies, is excited to announce its expansion into Egypt with the launch of its Collect and Return services, now available at over 500 Pargo Points, including Fawry, Circle-K and Basata stores. 

In the lead-up to this expansion, Pargo secured $4 million in funding. The funding will accelerate Pargo’s growth in Egypt’s booming e-commerce landscape, further enhancing its logistics network and enabling it to better meet the rising demand for affordable and convenient e-commerce delivery solutions.

Pargo’s Unique Solution: Transforming Logistics, Reducing Costs

Pargo offers a unique logistics solution that addresses the challenges of traditional home delivery services. Poor infrastructure, high traffic congestion and people often not being at home are common problems in most African cities, leading to high rates of missed deliveries, ultimately driving up the cost of logistics and frustrating online shoppers.

By utilising an extensive network of Pargo Points, located in vetted retail stores, Pargo ensures that they never miss a delivery and that consumers can collect, return or send their goods at their convenience. By consolidating multiple orders per drop, Pargo significantly reduces the cost of delivery.

Pargo was founded in Cape Town by Lars Veul and Derk Hoekert. To date, they have built the largest tech-enabled delivery network in South Africa with over 4000 Pargo Points across the country and have connected leading companies like Amazon, Bash and Jumia with over 10 million online shoppers. 

Empowering E-Commerce in Egypt and Noon as a first client

Pargo’s entry into Egypt comes at a critical time as the country's e-commerce market is rapidly expanding. The need for efficient, affordable delivery services is urgent, with major e-commerce platforms like Noon, Jumia and Amazon driving online shopping demand.

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. Noon customers can now choose to collect their orders from their preferred Pargo Point, enhancing convenience and flexibility.

"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 500 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.”

Early Success, Payments and Future Plans

Pargo initially launched a pilot in Egypt in 2023, which has yielded overwhelmingly positive results. They opened up 150 Pargo Points to test the solution by offering their solution to a small number of e-commerce companies and their online shoppers with better than expected adoption. They also seamlessly 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. 

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.”

Strategic Funding to Fuel Growth

Pargo’s expansion into Egypt was preceded by a successful $4 million funding round led by 3Capital Ventures (previously part of Allan Gray), Endeavor, SAAD Investment Holdings and UW Ventures. This funding will continue to accelerate Pargo’s growth across Egypt and beyond, enabling the company to scale its logistics network and enhance its services.