DIGGIPACKS acquires Egypt's FWRUN
- Saudi Arabia-based last-mile delivery and logistics services provider DIGGIPACKS, has acquired Egypt-based e-commerce solutions provider FWRUN, as the company looks to expand its presence in the Egyptian market.
- In April, DIGGIPACKS raised a $400,000 pre-Seed funding round from YOUXEL Ventures, OQAL, as well as other Saudi angel investors.
- Founded in 2020 by Hasan Jabarti, DIGGIPACKS aggregates last mile and fulfillment companies, enabling retailers to move their parcels with ease.
In the era of COVID-19, the growth of the e-commerce market has become a major challenge for transportation and logistics companies that require growth rates that are in line with the overall growth in the size of the e-commerce market in the Arab world.
Therefore, it has become imperative for all startups to search for potential partners and form alliances that allow them to grow and generate more sales while maintaining profitability rates alike.
Riyadh-based Diggipacks launched in 2020 providing its services in the Kingdom of Saudi Arabia in the field of e-commerce and retail, where the company provides storage services (Middle Mile) and shipping services (Last Mile) through strategic partners in both parts, As the company adopts the principle of 4PL, That means he company does not own any assets, but rather provides high-quality technology to connect merchants with a huge number of 3pl warehouses all over the Kingdom, in addition to linking with more than 30 shipping companies operating inside the Kingdom, That provides merchants with endless options in order to maintain a constant level of service in terms of efficiency and quality.
This was stated by Hassan Jabarti, CEO of Diggipacks, who has more than 20 years of experience in the field of logistics and technology.
In addition to his co-founder, Amin Al-Atrash, who worked for major companies in the field of logistics and transportation.
These accumulated experiences were reflected in the unprecedented growth of the company in its first and second year, respectively.
Where Diggipacks can serve merchants with a capacity of 5,000 shipments per day on an area of more than 15,000 square meters.
A few months before the launch of Diggipacks, FwRun services were launched in Cairo in the last quarter of 2019 as a Fulfillment center that provides storage and Handling services (Middle Mile), and it was able to attract a number of merchants interested in the service in addition to a number of international brands due to the severe market need for this service .
The founding team has expertise in retail, digital transformation and e-commerce.
Given that Khaled El-Nimr, the co-founder and CEO, has extensive experience in the retail market and digital transformation, in addition to his partner, Ahmed Maghraby, the commercial manager responsible for strategic partnerships and business development for the company.
Khaled expressed his optimism regarding the expansion of the two companies in Egypt and Saudi Arabia, as this alliance will enable the provision of high-quality technology in the Egyptian market, in addition to the possibility of growth in cross-border trade opportunities between the two countries, which contributes to enhancing the growth opportunities for the Small and medium enterprise.
Both Hassan Jabarti and Khaled El-Nimr referred to the impact of the partial acquisition deal between Diggipacks and FwRun.. Where Diggipacks acquired a share (an undisclosed value) of the total shares of FwRun, in exchange for providing technological support and expansion in the Kingdom, provided that Diggipacks expands in the Egyptian market. Via its partner FwRun.
And it clearly appears that both Startups need to expand aggressively that will require new investments rounds for both of them.