Egyptian logistics and last mile delivery company Bosta has raised a US$6.7 million Series A funding round to scale its operations and expand into the GCC.
Founded in 2017 by Mohamed Ezzat and Ahmed Gaber, Bosta provides a full-stack delivery solution for e-commerce companies. Its product simplifies logistics, allowing its customers to have full control over the delivery process.
Bosta currently serves more than 2,200 businesses, covering all of Egypt. Since its inception, the company has delivered more than four million parcels, half of which have been completed since the COVID-19 outbreak. It claims to have a 95 per cent delivery success rate.
The US$6.7 million Series A funding round is led by global VC fund Silicon Badia, with participation from 4DX Ventures, Plug and Play Ventures, Wealthwell VC and Khawarizmi VC, as well as other regional and global investors. Bosta had previously received investment from DPDgroup, Fawry, Numu Capital and Cairo Angels.
With the fresh funds, the startup plans to scale its operations as well as expand into the GCC. It targets delivering 15 million parcels in Egypt in the next two years, and reaching the 20,000 user mark.
“Solving the last mile delivery problem for ecommerce companies is very crucial for the ecommerce business to grow in Egypt and the Middle East. 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,” said Mohamed Ezzat, founder and chief executive officer (CEO) of Bosta.
Dr Fawaz Zu’bi, founder and CEO of Silicon Badia, said e-commerce had always had amazing potential in the region, but was always held back by something, whether payments, logistics, market fragmentation, or customer adoption.
“We are excited to finally see companies like Bosta emerge to tackle some of these issues and help ecommerce realise its full promise and potential in a region that has now “turned on” digitally,” he said.