Mylerza Cairo-based e-commerce fulfillment startup, plans to enter three new markets in North Africa and expand across Egypt over the next three months against the backdrop of the $9.6 million in funding it has just secured obtained.
The startup has also set its eyes on the growing e-commerce market in East Africa, with the long-term goal of becoming a pan-African shipping logistics provider – leveraging the e-commerce market in Africa, which is 18% growth since 2014.
The Mylerz growth financing round was led by Lorax Capital Partners, an Egypt-based private equity firm with the participation of Fawry, one of the largest e-payment companies in Egypt. As Mylerz expands to Algeria, Tunisia and Morocco, Fawry, its payment partner, will drop by to provide electronic payment and fund-raising services.
“Our immediate plan is expanding across Egypt, opening new markets and facilitating cross-border trade for our customers. We have the right partners to make this happen and grow our end-to-end logistics platform,” Mylerz Founder and CEO, Samer Gharaibehtold businesstraverse.com.
“Fawry’s more than 250,000 agents will help us deposit cash collected from buyers as cash on delivery is still the preferred method in Egypt. This makes our business less risky, and the reduced risk means we can grow much faster,” said Gharaibeh.
Ashraf Sabry, CEO of Fawry, said the investment in Mylerz is part of its strategy “to build an integrated trading ecosystem in Egypt and explore international expansion opportunities with strong partners such as Mylerz and Lorax.”
Gharaibeh founded Mylerz in November 2019, drawing on his experience at Aramex, a UAE-based multinational logistics and fulfillment company, where he spent 23 years, his last role as Head of Africa.
“Through my experience at Aramex, I understand the regulations of different countries in Africa and know the right kind of partnerships to be successful. I will use this knowledge and experience to make Mylerz the preferred pan-African logistics provider and e-commerce partner,” said Gharaibeh.
The Mylerz platform enables its partners to track orders shipped, change destination or delivery time, and generate business insights such as consumer behavior and demographics Image Credits: Mylerz
The Mylerz platform enables its partners to track orders shipped, change destination or delivery time, and generate business insights such as consumer behavior and demographics.
The startup says it makes same-day deliveries on behalf of hundreds of its partners.
Gharaibeh told businesstraverse.com that Mylerz has 21 fulfillment centers and plans to open a 25,000 sq ft hub, the largest to date, to keep up with growing demand for warehousing, order fulfillment and last-mile deliveries.
The fulfillment hubs, Gharaibeh said, have been dispersed to ensure they are close to customers for faster deliveries. To date, Mylerz has delivered 2 million packages.
“We operate on a decentralized system and these hubs, which are close to our customers, help us consolidate parcels and shipping for deliveries quickly enough to deliver on our same-day delivery promise,” he said.
Mylerz also has a fleet of more than 350 environmentally friendly vehicles powered by Compressed Natural Gas (CNG). The initial cost of these vehicles is higher compared to conventional vehicles, but this is offset by their lower fuel consumption.
Ashraf Zaki, Managing Partner at Lorax Capital Partners, said: “Mylerz has used its know-how and premium technology offering to address several issues related to last-mile deliveries in Egypt, including complex routes, the prevalence of cash and diverse merchants with diverse needs Lorax is supporting Mylerz to become the continent’s first fully integrated e-commerce logistics player, offering a unique blend of first-class customer service and efficient delivery services for both regional businesses and consumers.”
