The startup plans to use the fresh funds to expand into Dubai and Saudi Arabia by the end of 2021.
Bosta, the leading e-commerce logistics startup in Egypt, secured $6.7 million in a Series A round led by Silicon Badia, with participation from 4DX, Plug and Play Ventures, Wealthwell VC, and Khawarizmi VC, as well as other regional and global investors. This comes after the startup secured $1.8m in Series A funding from DPDgorup, a European parcel delivery company, raising its total financing to almost $9 million.
Bosta will use the fresh funds to intensify operations domestically and go abroad, aiming to deliver more than 15 million packages in Egypt over the next two years, and to expand operations in the GCC, namely Dubai and Saudi Arabia, by the end of 2021.
Launched in 2017, Bosta provides last-mile delivery services to e-commerce businesses in Egypt. The Cairo-based startup is dominating the parcel delivery industry, and with over 2000 businesses using Bosta to deliver products across the country, it is playing a role in helping businesses grow. The startup offers a variety of services including next-day delivery, purchase order tracking, cash collection and returns, and exchanges. In addition to serving small businesses, Bosta also works with major e-commerce platforms including Souq and Jumia.
Its guaranteed next-day delivery services covers the entire country and it is delivering on average 300,000 parcels each month, boasting a 95 percent delivery success rate. Since its launch, Bosta has delivered more than four million parcels, including 2.3 million delivered since the COVID-19 outbreak, helping businesses stay resilient in the face of the pandemic.
“E-commerce has always had amazing potential in our region but was always being held back by something, whether payments, logistics, market fragmentation, or customer adoption,” said Dr. Fawaz H. Zu’bi, Founder and CEO of Silicon Badia. “We are excited to finally see companies like Bosta emerge to tackle some of these issues and help ecommerce realize its full promise and potential in a region that has now ‘turned on’ digitally,” he continued.