MilutsThe Cairo-based e-commerce fulfillment startup plans to use the $9.6 million funding it just raised to enter three new markets in North Africa and expand across Egypt over the next three months.
The startup is also eyeing East Africa’s growing e-commerce market. Our long-term goal is to grow into a Pan-African shipping and logistics provider by leveraging Africa’s e-commerce market, which is growing at 18% per year. Growth since 2014.
The Mylerz growth funding round was led by Lorax Capital Partners, an Egypt-based private equity firm that includes Fawry, one of Egypt’s largest e-payments companies. As Mylerz expands to Algeria, Tunisia and Morocco, payment partner Fawry will join them to provide electronic payment and cash collection services.
“Our immediate plan is to expand across Egypt, opening new markets for our customers and facilitating cross-border trade. We have the right partners to make this happen and grow our end-to-end logistics platform,” said Mylerz Founder and CEO. Sameer GaraybeI told TechCrunch.
“Fawry’s 250,000+ agents will help deposit the cash they collect from buyers as cash delivery remains the preferred payment method in Egypt. This reduces the risk for our business and that risk reduction means we can grow much faster,” said Gharaibeh.
Ashraf Sabry, CEO of Fawry, said the investment in Mylerz is part of a strategy “to build an integrated commerce ecosystem in Egypt and explore opportunities for international expansion with strong partners like Mylerz and Lorax”.
Gharaibeh founded Mylerz in November 2019, borrowing experience from Aramex, a multinational logistics and fulfillment company based in the UAE.
“From my experience at Aramex, I understand the regulations of different countries in Africa and know the right type of partnership to be successful. I am using this knowledge and experience to make Mylerz the preferred pan-African logistics provider and e-commerce partner,” said Gharaibeh.
The Mylerz platform allows partners to track orders sent for delivery, change destinations or delivery times, and generate business insights such as consumer behavior and demographics.
The startup says it offers same-day delivery on behalf of hundreds of partners.
Gharaibeh told TechCrunch that Mylerz has 21 fulfillment centers and plans to open its largest 25,000-square-meter hub to date to keep up with growing demand for storage, fulfillment and final delivery.
Gharaibeh said the fulfillment hubs are decentralized so they are closer to customers for faster delivery. To date, Mylerz has delivered 2 million packages.
“We have a decentralized system, and with these hubs close to our customers, we can consolidate packages and ship shipments fast enough to meet our same-day delivery promises,” he said.
Mylerz also operates more than 350 green vehicles powered by compressed natural gas (CNG). The initial cost of these vehicles is higher compared to conventional vehicles, but this is offset by the lower demand for fuel.
Ashraf Zaki, Managing Partner at Lorax Capital Partners, said: “Mylerz leverages its know-how and premium technology to address complex routes, cash replenishment, and needs. Lorax is helping Mylerz to become the continent’s first fully integrated e-commerce logistics provider, providing local businesses and consumers a unique combination of premium customer service and efficient delivery services.”