The round also included the participation of 4DX Ventures, Plug and Play Ventures, Wealthwell VC, Khwarizmi Ventures, and a few other investors. It takes their total investment to date to US$9.1 million.
In February last year, Bosta had announced a seven-figure (USD) Series A from European parcel delivery company DPDgorup and Fawry but it has confirmed to us that the US$6.7 million it has announced today is in fresh funds and does not include any amount from the previously announced Series A.
“Ecommerce has always had amazing potential in our region but was always being held back by something whether payments, logistics, market fragmentation, or customer adoption,” Dr. Fawaz H. Zu’bi, the founder and CEO of Silicon Badia, said in a statement.
“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.”
Dr. Fawaz H. Zu’bi – Founder and CEO, Silicon Badia
Bosta in a statement said that its guaranteed next-day delivery service covers the entire country. With a success rate of 95 percent, it is currently delivering 300,000 parcels every month on average.
Mohammed Ezzat, the founder and CEO of Bosta revealed that they’re planning to expand to Saudi by the end of this year.
It may also expand to more markets in GCC afterward. Khwarizmi Ventures, one of the investors that participated in this financing round, is the venture arm of Kadi Group that owns and runs different logistics businesses in Saudi including Zajil. They would apparently help Bosta with their expansion to Saudi.
“As a company, we are committed to helping the ecommerce sector grow by providing them with speedy delivery, quality, and exceptional service—all while making sure our prices are one of the most competitive to help them with their tight unit economics and help them grow a profitable business.
“At Bosta, with our customer-driven approach and finding tech-driven solutions, we make sure that we are able to hit the three pillars while keeping our costs as low as possible.”
Bosta relies on its network of freelance drivers who are paid for every successfully delivered order. The first and last mile is done by this fleet and the middle-mile (for inter-city couriers) by rented vans.
“We are really impressed by what Mohamed, Ahmed, and their team have accomplished in a very challenging sector (logistics) and market (Egypt),” Namek Zu’bi, co-founder and Managing Partner of Silicon Badia, added.
“Numbers speak for themselves and this company is on track to triple across its KPIs this year—all while maintaining a superior customer experience, something that is critical in this space.”