– South Africa, Cape Town – Pargo, the leading high tech logistics and fulfillment company, announced today that it has secured a new equity investment of over R 15 million in a funding round led by SAAD Investment Holdings. Veteran Beijing-based venture capital firm, Tsing Capital, and Pay-U co-founder, Johan Dekker, also participated in the round. The funds will be used by the company for growing working capital needs arising from its rapid expansion of sales, for aggressive new marketing plans, as well as to develop and widen its logistics and fulfillment services offering. The company is very pleased to announce that Johan du Preez, CEO of SAAD Investment Holdings, will join Pargo’s board of directors, bringing his substantial experience and network to assist in Pargo’s future development.
Founded in 2015 by entrepreneurs Lars Veul and Derk Hoekert, Pargo has developed a proprietary and technology-based physical network, using existing retail stores, which allows customers to both send and receive parcels at dedicated pick-up points throughout the country. This solution addresses logistic challenges that South Africans face daily. This includes busy, mobile people who find it inconvenient to wait around for a courier delivery, as well as those in informal settlements and rural areas where home delivery is often not available or very expensive. Its compelling solutions provide convenience and cost savings. It also removes the need to rely on the volatile service levels of the South Africa Post Office in cases where normal courier deliveries are not feasible. Similar business models have proven to be effective in international markets, including the UK, the Netherlands, Australia and Japan.
This recently closed funding round builds on an exceptional 2016 for Pargo, which saw revenues increase 629% YoY, the client base increase by 463%, and the physical collection point network grow to over 1,000 unique pick-up points located across the country. With the already enhanced economies of scale brought about by the exponential increase in Pargo’s pick-up point network to date, the business’ competitive position should be even further solidified in the coming months, as a result of the new funding which will serve to further accelerate the network’s expansion.
“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” say Lars Veul and Derk Hoekert, Directors and co-founders at Pargo. They add: “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.”
Johan du Preez, CEO of SAAD Investment Holdings says: “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.”
Pargo is a Cape Town based, South African company, which offers fulfillment services to retailers through its network of more than 1,000 pick-up and drop-off points across the country. Customers send or collect packages and parcels from trusted and well-known retail stores for a small and very affordable charge, removing the necessity or cost of having to wait at home. To date, Pargo has signed up more than 300 retail partners.
For more information : http://www.pargo.co.za
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