Egypt’s logistics startup Milezmore secures US$5M pre-seed round, eyes expansion

EGYPT – Milezmore, a Cairo-based logistics startup, has closed a US$5 million pre-seed round to expand its operations in Egypt.

The latest round was led by Brimore, Egypt’s top social commerce platform, and will allow the firm to enhance technology, expand storage, enlarge the delivery capacity, and scale cloud solutions.

It is also intended to address the challenges in the fragmented supply chain in the country and double its staff.

The new funds will also go towards advancing modern technologies with more emphasis on boosting logistics sustainability, as well as driving its capabilities in artificial intelligence, machine learning, and blockchain.

The startup has experienced tremendous growth and built an infrastructure complete with a 20,000-square-foot warehouse.

Its network has expanded to all of Egypt through 15 delivery hubs, processing more than 15 million pieces, delivering 1 million packages, and attracting more than two dozen new customers across industries.

Egypt has suffered from a fragmented traditional supply chain structure that no longer works with the rise of new commerce models, especially after being hit with a global pandemic,” said Brimore Co-Founder and CEO Mohamed Abdulaziz.

The startup expansion plans coincide with Egypt’s evolving trading hubs, creating a wide range of opportunities for logistics service providers.

The country’s logistics spending is expected to cross US$50 billion by 2024, according to Mordor Intelligence Research.

As many as 90% of the country’s international trade flow is through sea transport, which is a significant contribution to its economy.

Egypt, under Vision 2030, aims to increase the handling capacity of ports to 370 million metric tons by 2030, from 120 million metric tons.

Egypt is expected to record the highest growth rate in the Levant and North Africa region, accelerating at a rate of 5.5% in 2021 in the freight and logistics sector.

In addition, startups in the logistics sector have raised sizable funds since the beginning of the year, as OneOrder and Yalla Fel Sekka, which are Egyptian logistics startups, secured US$1 million and US$7 million in their latest funding rounds, respectively.

Also, iMile Delivery, a Dubai-based logistics startup, has recently raised US$40 million in a Series A fundraising round, taking the delivery start-up’s valuation to US$350 million.

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