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.
The firm will use the funds to fuel its rapid expansion of sales, for aggressive new marketing plans, as well as to develop and widen its logistics and fulfillment services offering.
Lars Veul and Derk Hoekert, Directors and co-founders at Pargo 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.”
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.
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.”