Cairo-based courier startup Bosta has just announced its plans to enter the Saudi market early next year, with potential to expand into the UAE and Kuwait after their first step into Gulf expansion.
Last May, Bosta secured a large $6.7 million Series A round, which helped catapult their expansions into fruition. Co-founder and COO Omar Yaghmour said that the company hopes to also expand in the African continent, eyeing Kenya, Morocco, and South Africa especially.
As of right now, Bosta oversees approximately 300,000 deliveries in Egypt monthly. Working with over 2,000 businesses including Amazon, Noon, and Jumia, the delivery provider was founded in 2016. It relies on tech to deliver orders, exchange equipment, and do cash collections for e-commerce retailers.
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.
“Solving the delivery problem for e-commerce companies is critical to the growth of e-commerce businesses in Egypt and the Middle East,” said Mohamed Ezzat, co-founder and CEO of Bosta Technology, at the company’s round table on Tuesday. As a company, we are committed to helping the e-commerce sector grow by providing rapid delivery, quality and exceptional service, while providing competitive prices to help them earn a better profit margin and thus achieve higher profit rates.
Through a focused approach that focuses on customer satisfaction and the search for technology-based solutions, we are always keen to achieve the highest quality while keeping our costs as low as possible. Engineer Mohamed Ezzat has revealed that Bosta technology company is currently implementing a new financing round, the largest in its history, and will use the resulting financing to open five new international markets within two years.
Engineer Omar Yaghmour, Director of Growth and Development at Bosta Technology, said the company aims to expand in a number of countries in the Middle East and Africa, led by Saudi Arabia, the United Arab Emirates, Kuwait, Kenya and Morocco as part of its expansion plan in the Gulf and Africa market. Omar Yaghmour noted that the move of The Central Company to expand in Saudi Arabia during the beginning of next year 2022, came after a study of the Saudi market, which confirmed the rapid growth of e-commerce in Saudi Arabia along with the size of the huge market here.
Omar Yaghmour pointed out that the company’s strategy to expand to the rest of the Gulf countries such as the UAE and Kuwait will take place in the next two to three years, noting that despite the rapid growth in those countries. On the expansion of African markets, he said the company aims to expand in Kenya and Morocco, noting that the Moroccan market is full of huge growth opportunities for the company amid a scarcity of companies working in this field.
