Cairo’s parcel delivery company Mylerz has raised $9.6 million in a funding round that will fuel the start-up’s expansion into Algeria, Tunisia and Moroco by the third quarter this year.
Mylerz, which operates 21 hubs across 14 cities, provides end-to-end solutions including fulfillment and last-mile delivery. The funding round was led by Lorax Capital Partners. Fawry, Egypt’s leading payment company that also participated in the round, will help bolster Mylerz’s cash collection services for its merchants.
“East Africa is the most populous sub region of Africa, with a population of approximately 455 million people in the 18 countries. We are looking at Kenya, Tanzania and Uganda with a combined population of more than 120 million. Also, these countries are underserved when it comes to e-commerce logistics services,” Mylerz CEO Samer Gharaibeh told Zawya.
Founded in 2019, Mylerz will use the investment to construct and open an AI-enabled, automated 25,000 sqm cross-docking fulfilment centre west of Cairo by Q4 2022 and to augment its current 1,500 sqm fulfilment centre, a statement from the company said.
According to Magnitt, 42 percent of the total funding secured by Egypt-based start-ups last year went to the transport, logistics and e-commerce industries.
Ashraf Zaki, Managing Partner at Lorax Capital Partners, added, “We are excited to partner with Samer and the Mylerz team who have demonstrated their wealth of experience in rapidly growing Mylerz into a leader and innovator in the e-commerce logistics industry. Mylerz has leveraged its know-how and premium technology offering to address several problems associated with last-mile delivery in Egypt including complex routes, the prevalence of cash, and diverse merchants with diverse needs.
“Lorax is backing Mylerz to become the continent’s first fully integrated e-commerce logistics player, bringing a unique blend of premium customer service and efficient delivery services to regional businesses and consumers alike.”
Ashraf Sabry, CEO of Fawry, added, “Fawry’s investment in Mylerz is part of our strategy to build an integrated commerce ecosystem in Egypt and explore international expansion opportunities with strong partners like Mylerz and Lorax.”
