Egypt’s Fintech Fawry Backs Ecommerce Fulfillment Startup Mylerz In $9.6M Funding Round

Mylerz, a Cairo-based e-commerce fulfillment firm, wants to grow into three new markets in North Africa and throughout Egypt over the next three months, thanks to a $9.6 million investment round it recently closed. 

Among those who participated in the Mylerz expansion investment round were Lorax Capital Partners, an Egypt-based private equity firm, along with Fawry, one of the country’s largest e-payment providers. In conjunction with Mylerz’s expansion into the countries of Algeria, Tunisia, and Morocco, Fawry, its payments partner, will provide electronic payment and cash collection services.

“Our immediate plan is expanding across Egypt, opening new markets and facilitating cross-border trade for our customers. We have the right partners to make this happen and to grow our end-to-end logistics platform,” Mylerz Founder and CEO, Samer Gharaibeh, said in a statement. “Fawry’s over 250,000 agents will help us deposit cash collected from buyers since cash on delivery is still the preferred method of payment in Egypt. This will make our business less risky, and the reduced risk means that we can grow much faster.” 

Mylerz ecommerce
Image source: Mylerz Founder and CEO, Samer Gharaibe / Mylerz

Why The Investors Invested

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

Read also Egyptian Ecommerce Platform ON Market Raises $215,000 Pre-Seed Round

Ashraf Zaki, Managing Partner at Lorax Capital Partners, said, “ 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.”

A Look At What The Startup Does

Gharaibeh launched Mylerz in November 2019 as a result of his 23-year career with Aramex, an international logistics and fulfillment company based in the United Arab Emirates, where he most recently served as the company’s head of Africa.

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

With the help of the Mylerz platform, its partners may follow the orders that have been sent out for delivery, adjust the delivery destination or time, and produce business insights such as customer behavior and demographics.
The startup claims to be able to arrange same-day delivery on behalf of hundreds of its partner businesses.

Gharaibeh stated that Mylerz already has 21 fulfillment centers and wants to create a 25,000 sqm hub, which will be the company’s largest to date, in order to keep up with the increased demand for storage, order processing, and last-mile delivery.

Read also Egyptian Fintech Startup Khazna Obtains Final Approval From Central Bank Of Egypt

Gharaibeh explained that the fulfillment centers are dispersed throughout the country to guarantee that they are in close proximity to clients, allowing for faster deliveries. Mylerz has delivered more than 2 million packages to date.

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

Mylerz also operates a fleet of over 350 eco-friendly vehicles powered by compressed natural gas (CNG). The initial cost of these vehicles is higher when compared to conventional ones but this is off-set by their less fuel demand.

Aside from that, Mylerz operates a fleet of over 350 environmentally friendly vehicles that are fuelled by compressed natural gas (CNG). When compared to conventional vehicles, the initial cost of these vehicles is higher, however this is offset by their lower fuel use.

Mylerz ecommerce Mylerz ecommerce Mylerz ecommerce

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh