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Egypt’s Mylerz raises $9.6M for its e-commerce fulfillment service, eyes Africa-wide growth – TechCrunch

mylerza Cairo-based e-commerce fulfillment startup, plans to enter three new markets in North Africa and expand across Egypt over the next three months on the back of recently secured $9.6 million in funding.

The startup is also eyeing the growing e-commerce market in East Africa, with the long-term goal of becoming a pan-African shipping logistics provider – by capturing the e-commerce market in Africa, which has been growing at 18% annually since 2014.

Mylerz’s growth financing round was led by Lorax Capital Partners, an Egypt-based private equity firm with participation from Fawry, one of the largest e-payments companies in Egypt. As Mylerz expands into Algeria, Tunisia and Morocco, Fawry, its payment partner, will join to offer electronic payment and cash collection services.

“Our immediate plan is to expand across Egypt, opening new markets and facilitating cross-border trade for our customers. We have the right partners to make this happen and expand our end-to-end logistics platform,” explains Mylerz founder and CEO, Samer Gharaibehsaid TechCrunch.

“Fawry’s 250,000+ agents will help us deposit cash collected from buyers as cash on delivery is still the preferred payment method in Egypt. This makes our business less risky, and the reduced risk means we can grow much faster,” said Gharaibeh.

Fawry CEO Ashraf Sabry said the investment in Mylerz is part of his strategy to “build an integrated trading ecosystem in Egypt and explore international expansion opportunities with strong partners like Mylerz and Lorax”.

Gharaibeh founded Mylerz in November 2019, drawing on his experience at Aramex, a multinational logistics and fulfillment company based in the United Arab Emirates, where he worked for 23 years, most recently as Head of Africa.

“Because of my experience at Aramex, I know the regulations of different countries in Africa and I know the right type of partnerships to be successful. I am using this knowledge and experience to make Mylerz the preferred pan-African logistics provider and e-commerce partner,” said Gharaibeh.

The Mylerz platform allows its partners to track orders sent for delivery, change destination or delivery time, and generate business insights such as consumer behavior and demographics Photo credit: mylerz

The Mylerz platform allows its partners to track orders sent for delivery, change destination or delivery time, and generate business insights such as consumer behavior and demographics.

The startup says it offers same-day deliveries on behalf of hundreds of its partners.

Gharaibeh told TechCrunch that Mylerz has 21 fulfillment centers and plans to open a 25,000-square-foot hub, its largest yet, to keep up with growing demand for warehousing, order fulfillment and last-mile deliveries.

The fulfillment hubs, Gharaibeh said, are distributed to ensure they are in close proximity to customers for faster deliveries. To date, Mylerz has delivered 2 million packages.

“We operate a decentralized system, and these hubs, which are close to our customers, help us consolidate and ship packages for deliveries fast enough to meet our promise of same-day delivery,” he said.

Mylerz also operates a fleet of over 350 environmentally friendly vehicles that run on compressed natural gas (CNG). The initial cost of these vehicles is higher compared to traditional vehicles, but this is offset by their lower fuel requirements.

Ashraf Zaki, Managing Partner at Lorax Capital Partners, said: “Mylerz has leveraged its expertise and premium technology offering to address multiple issues related to last mile delivery in Egypt, including complex routes, cash proliferation and different dealers with different needs. Lorax supports Mylerz in becoming the continent’s first fully integrated e-commerce logistics provider, offering local businesses and consumers a unique blend of superior customer service and efficient delivery services.”

Egypt’s Mylerz raises $9.6M for its e-commerce fulfillment service, eyes Africa-wide growth – TechCrunch Source link Egypt’s Mylerz raises $9.6M for its e-commerce fulfillment service, eyes Africa-wide growth – TechCrunch

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