South Africa startup Pargo secures US$1.2m worth investment funding
Revolution in the online on-demand delivery service has taken a massive rise over the past years in the Africa tech space and South Africa’s Pargo, a high tech logistics and fulfillment firm secured a new equity investment of over R 15 million in a funding round led by SAAD Investment Holdings with participation from veteran Beijing-based venture capital firm, Tsing Capital, and Pay-U co-founder, Johan Dekker.
Pargo understands that parcel delivery is about convenience, speed and reliability. You’ll never have to wait at home all day for your parcel or miss a delivery again. Pargo delivers your parcels to a store near you. Matters security are also addressed via the reliable track and trace system allows you to monitor your delivery real-time.
Founded in 2015, Pargo’s proprietary and technology-based physical network uses existing retail stores to allow customers to both send and receive parcels at dedicated pick-up points throughout the country. Pargo has a network of more than 1,000 pick-up and drop-off points across the country and has signed up more than 300 retail partners.
This funding round builds on an exceptional 2016 for Pargo, which saw revenues increase 629% YoY, the client base increase by 463%, the new funding will further accelerate the network’s expansion. Johan du Preez, CEO of SAAD Investment Holdings, will join Pargo’s board of directors.
Directors and co-founders Lars Veul and Derk Hoekert said in a statement “We are very pleased with the quality and endorsement of our new shareholders, and the possibilities of accelerating our expansion, as well as adding new services that these new funds open up for us. We also encourage retail store partners, customers and talented developers to look us up to find out what joining us can mean for you in terms of cost, convenience, and career benefits.”
“Pargo has clearly hit a vein of consumer need with its logistics-oriented fulfillment services. In combination with its proprietary technology and first-mover advantage, this latest investment – coupled with the collective guidance from the investor consortium – should serve to solidify the business’ lead position in this market,” said Johan du Preez, CEO of SAAD Investment Holdings.
