Cairo-based ecommerce delivery and logistics startup ‘R2S Logistics’ has raised six-figure (USD) investment from A15, the MENA-based investor announced last week in a statement to MENAbytes, without disclosing exact size of the deal.
Founded in 2016 by Mahdi Al Olabi, R2S Logistics is a logistics startup that offers different types of delivery services including last-mile delivery, payment collection solutions, returns and exchange management, inventory management and fulfillment to ecommerce businesses across Egypt.
R2S Logistics doesn’t own a fleet and instead works with multiple fleet owners to deliver the shipments. The startup currently has eleven hubs across Egypt and has recently introduced R2S Plus, its network of partner retail stores that act as pickup points for customers of ecommerce businesses to receive their packages. R2S plans to expand the network of these partner stores to 600 by November next year.
“Around 30% of online-ordered shipments fail at the first attempt, which is why R2S’ staggering successful package pick-up rate of over 93% has led to a customer repeat rate of 75%, well above industry averages. Participating retail stores benefit from the acquisition of new and repeat customers from the footfall traffic that visit their stores,” noted the statement.
Mahdi Al Olabi, CEO of R2S Logistics, commenting on the occasion, said, “We are excited to have A15 as a strategic investor due to their domain expertise, operational excellence and track record in the e-commerce space as they invested in, venture-built, grew and exited e-commerce companies before. Hence, they can bring a lot of value to the table, and will support our expansion to collaborate with more physical stores and e-commerce platforms across Egypt, empower more businesses, and provide convenience to a larger customer base.”
Fadi Antaki, CEO of A15, said, “We believe that R2S is more than an e-commerce delivery partner. It is an enabler to online businesses in the ecosystem through its strong logistics experience, innovative tech and strategic partnerships and recently launched Pick-Up and Drop-Off (PUDO) network. In so, through this investment, A15 is working on unlocking the potential of the e-commerce ecosystem as weak delivery service has been one of the factors delaying the take-off of the sector in Egypt.”