PARGO SECURES INVESTMENT LED BY SAAD INVESTMENT HOLDINGS TO FUND RAPID GROWTH
CAPE TOWN, MARCH 22nd – Pargo, South Africa’s 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.
Interested in working at Pargo? We are always
looking for ambitious talent. Get in touch via firstname.lastname@example.org or 021 447 3636.
For media enquiries or interviews, contact
Lars Veul on 084 789 8859.