The investment made by A15 aims to empower the e-commerce ecosystem in Egypt and allow the startup to expand in the region.
Egyptian e-commerce logistics and delivery tech company R2S raises a six-dollar-figure investment from Egyptian tech investor A15. The startup is planning to use its Pre-Series A investment to expand its store network to reach 600 stores nationwide before November 2020.
“We are excited to have A15 as a strategic investor due to their domain expertise, operational excellence and track record in the e-commerce space as they invested in, venture-built, grew and exited e-commerce companies before," says Mahdi Al Olabi, CEO of R2S. "Hence, they can bring a lot of value to the table, and will support our expansion to collaborate with more physical stores and e-commerce platforms across Egypt, empower more businesses, and provide convenience to a larger customer base.”
R2S enables e-commerce platforms with a full-fledged delivery and logistics offering and services including last mile delivery, parcel pick-up and drop-off points, payment collection solutions including cash-on-delivery (COD), returns and exchange management, inventory management and fulfillment as well as international shipping options for local Egyptian sellers and merchants.
According to the latest e-commerce in MENA Report by Bain & Company and Google, the GCC and Egypt account for 80% of the e-commerce market in MENA, and growing at a 30% compound annual rate of sales and 100% in terms of parcels shipped, which is double as fast as the rest of MENA, and with Egypt becoming one of the fastest growing markets in the MENA region.
One of the innovative e-commerce and logistics startup’s products is the R2S Plus platform which connects a shared economy network of existing retail stores with e-commerce sellers, giving customers greater control over their delivery experience by allowing them to choose the nearest location, most convenient time and payment method to receive their package.The light business model adopted by R2S gives it the tools necessary for expanding its geographical reach to nation-wide coverage with over 11 locations and counting.
“We believe that R2S is more than an e-commerce delivery partner. It is an enabler to online businesses in the ecosystem through its strong logistics experience, innovative tech and strategic partnerships and recently launched Pick-up and Drop-off (PUDO) network. In so, through this investment, A15 is working on unlocking the potential of the e-commerce ecosystem as weak delivery service has been one of the factors delaying the take-off of the sector in Egypt,” says Fadi Antaki, CEO of A15.
Sign up for the daily Startup Digest.