Cape Town based Pargo, a technology logistics company, says it has secured a new equity investment exceeding R15 million in a funding round led by SAAD Investment Holdings.<\/p>\n
Veteran Beijing-based venture capital firm, Tsing Capital, and Pay-U co-founder, Johan Dekker, also participated in the round.<\/p>\n
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 fulfilment services offering.<\/p>\n
Johan du Preez, CEO of SAAD Investment Holdings, will join Pargo\u2019s board of directors, bringing his substantial experience and network to assist in Pargo\u2019s future development.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
To date, Pargo has signed up more than 300 retail partners.<\/p>\n