- Bosta, an Egypt-based logistics startup, has raised undisclosed investment funds from Axian Group, a pan-African group and investment firm.
- Following the completion of an undisclosed pre-Series B round in 2022, the logistics startup entered Saudi Arabia and has now secured additional funding to continue its growth in the industry.
- This news comes after the company welcomed former DHL Express CEO Ken Allen as a board member and investor in February 2023.
Mohamed Ezzat and Ahmed Gaber founded Bosta in 2017, which offers logistics and delivery services to businesses in Egypt and Saudi Arabia. The logistics startup reportedly ranks among the top 20 in Cairo, Egypt and claims to have done over 10 million shipments.
Bosta's mobile or web application allows users to send and receive packages while communicating and monitoring deliveries in real-time.
Before the pre-Series B round led by several investors, including Khwarizmi Ventures and Hassan Allam Holding, the company raised $6.7 million in a Series A round in 2021 led by Silicon Badia, a venture capital firm based in the United States and Middle East.
The company planned to use a portion of the Series A funding to expand into Saudi Arabia and the United Arab Emirates. It announced opening an office in Riyadh and plans to open more in Saudi Arabia as part of its expansion strategy.
The Madagascar-based Axian Group has invested in several Egyptian startups, such as the B2B food and eCommerce platform MaxAB. Now, the company is looking into Bosta as a way to get more involved in Egypt's logistics sector.
According to research, Egypt's logistics market is expected to grow to $14.56 billion by 2024. Per a report published in 2023, Egypt has surpassed Turkey to become one of the world's top ten domestic logistics markets.
These numbers indicate that Egypt's logistics landscape is growing in popularity. Consequently, Axian Group's investment in Egypt's logistics industry is a significant development, and it may help Bosta's prospects of expanding into Saudi Arabia and other markets.