Pargo, a pioneering smart logistics enterprise established in 2015 by Lars Veul and Derk Hoekert in Cape Town, specializes in providing innovative e-commerce delivery solutions. The company has developed a vast network of over 4,500 advanced, technology-driven Pargo Points, which has successfully facilitated connections between prominent firms such as Amazon, Bash, and Jumia, and an extensive base of more than 10 million online consumers.
The logistics firm has recently secured a substantial investment of US$4 million in a funding round spearheaded by 3Capital Ventures (formerly associated with Allan Gray), along with contributions from Endeavor, SAAD Investment Holdings, and UW Ventures. This infusion of capital is earmarked for the enhancement of Pargo’s service offerings and the expansion of its Pargo Point network.
One of the immediate applications of the newly acquired funds is Pargo’s strategic foray into the Egyptian market, marked by the introduction of its Collect and Return services. This expansion has seen the establishment of over 500 Pargo Points across Egypt, incorporating partnerships with local entities such as Fawry, Circle-K, and Basata stores. Noon, a prominent Middle Eastern fashion and lifestyle online platform, is among the first major e-commerce operators to utilize Pargo’s services in Egypt.
Lars Veul, the CEO of Pargo, expressed excitement about the company’s expansion into what he described as one of Africa’s most dynamic e-commerce landscapes. Veul outlined Pargo’s straightforward mission to provide cost-effective e-commerce delivery solutions that cater to the needs of the 500 million online shoppers in Africa, a demographic that e-commerce companies often find challenging to reach. He emphasized the significant potential within the Egyptian market and viewed the expansion as a critical stride towards establishing the most extensive smart logistics network in the region.
Pargo’s initial presence in Egypt began with a pilot program in 2023, which involved setting up 150 Pargo Points to trial their delivery solution with a select group of e-commerce businesses and their customers. The pilot saw a higher-than-anticipated level of adoption. Additionally, Pargo introduced a “Cash on Collection” payment method, which is particularly suited to Egypt’s predominantly cash-reliant economy.
Looking to the future, Pargo has ambitious plans to broaden its network to 7,000 Pickup Points throughout the region by 2026. The company intends to continue forging partnerships with prominent local enterprises and brands.
Abdelmalek Shamsi, Pargo’s managing director in Egypt, highlighted the company’s commitment to delivering an unparalleled shopping experience to more Egyptian consumers through the Collect and Returns service. With strategic partnerships like the one with Noon and a robust pipeline of interested businesses, Shamsi is confident in Pargo’s ability to harness the vast potential of the Egyptian market.
