The growing e-commerce ecosystem in Egypt has attracted Saudi investors as the last mile logistics firm Diggipacks has acquired Egyptian solutions provider FwRun as part of efforts to expand its portfolio investment especially within the Middle East and North Africa (MENA) market.
Hassan Jabarti, CEO of Diggipacks
FwRun was founded in 2019 to provide fulfillment, delivery and warehousing services to e-commerce companies. The startup provides storage and handling services, and has attracted a number of local merchants and international brands as customers due to the market need for the service.
The Riyadh-based Diggipacks, meanwhile, launched a few months after FwRun in early 2020, and provides storage and shipping services. The company provides high-quality technology to connect merchants with a huge number of warehouses across Saudi Arabia, as well as more than 30 shipping companies.
Diggipacks raised a US$400,000 pre-seed funding round in April, and has now acquired FwRun as it looks to expand into Egypt.
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DIGGIPACKS, a Saudi Arabia-based last-mile delivery and logistics services provider, has acquired FWRUN, an Egyptian ecommerce solutions provider, in order to extend its footprint in the Egyptian market.
DIGGIPACKS raised $400,000 in pre-Seed fundraising from YOUXEL Ventures, OQAL, and other Saudi angel investors in April.
DIGGIPACKS, founded by Hasan Jabarti in 2020, brings together last mile and fulfillment firms to make it easier for retailers to transport their packages.
Diggipacks
Here Is What You Need To Know
Riyadh-based Diggipacks began operating in the Kingdom of Saudi Arabia in the sphere of e-commerce and retail in 2020, where the firm provides storage (Middle Mile) and shipment (Last Mile) services through key partners in both sides of the country. Because the company follows the 4PL principle, it does not own any assets and instead uses high-quality technology to connect merchants with a large number of 3PL warehouses throughout the Kingdom, as well as more than 30 shipping companies that operate within the Kingdom. This provides merchants with an endless number of options in order to maintain a consistent level of service.
Hassan Jabarti, CEO of Diggipacks, who has more than 20 years of experience in logistics and technology, claimed this. In addition to his co-founder Amin Al-Atrash, who worked for significant logistics and transportation organizations.
The company’s remarkable growth in its first and second years, respectively, reflected these acquired experiences.
With a daily capacity of 5,000 shipments and a floor area of more than 15,000 square meters, Diggipacks can service merchants.
FwRun services were launched in Cairo in the last quarter of 2019 as a Fulfillment center that provides storage and handling services (Middle Mile), and due to the severe market need for this service, it was able to attract a number of merchants interested in the service, as well as a number of international brands.
The founding team has retail, digital transformation, and e-commerce experience.
Given that Khaled El-Nimr, the co-founder and CEO, and his partner, Ahmed Maghraby, the commercial manager in charge of strategic partnerships and business development, have substantial experience in the retail sector and digital transformation.
Khaled expressed his optimism about the two companies’ expansion in Egypt and Saudi Arabia, saying that the alliance will enable the provision of high-quality technology in the Egyptian market, as well as the possibility of increased cross-border trade opportunities between the two countries, which will help small and medium businesses grow.
Both Hassan Jabarti and Khaled El-Nimr referred to the impact of the partial acquisition deal between Diggipacks and FwRun.. Where Diggipacks acquired a share (an undisclosed value) of the total shares of FwRun, in exchange for providing technological support and expansion in the Kingdom, provided that Diggipacks expands in the Egyptian market. Via its partner FwRun.
And it clearly appears that both Startups need to expand aggressively that will require new investments rounds for both of them.
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
