South African e-commerce logistics company Pargo is making its debut in Egypt, launching its Collect and Return services at over 500 Pargo Points, including locations at Fawry, Circle-K, and Basata stores. This expansion is supported by a $4 million funding round aimed at scaling operations and meeting the demand for cost-effective delivery solutions in Egypt’s burgeoning e-commerce market.
Pargo’s innovative logistics model relies on a network of pickup points, helping to lower delivery costs by consolidating orders and reducing instances of missed deliveries. The expansion into Egypt represents Pargo’s first significant international move, with Noon being one of its initial partners. Customers of Noon can now conveniently collect their orders at Pargo Points, enhancing flexibility in the shopping experience.
Having piloted its services in Egypt in 2023, Pargo has seen strong demand and has introduced a “Cash on Collection” payment option to cater to the country’s cash-based economy. The company plans to grow its network to 7,000 pickup points throughout the MENA region by 2026.
Pargo’s entry into Egypt underscores the significant growth potential within Africa’s logistics sector, spurred by increasing e-commerce activity. With challenges such as inadequate infrastructure and traffic congestion in urban areas, Pargo’s pickup model presents a practical alternative to traditional home delivery methods. By collaborating with key e-commerce players like Noon, Pargo is strategically positioned to bridge logistical gaps, offering consumers reliable and flexible delivery options.
