A15 pumps 6-figure investment into Egyptian e-commerce delivery and logistics technology company R2S
- R2S Parcel Pick up platform achieves a successful package pick-up rate of over 93%
- A15 unlocks the potential of e-commerce ecosystem through its investment in R2S
Cairo, Egypt, 18 December 2019. The leading tech investor A15 pumped a six-figure investment into pioneering Egyptian e-commerce logistics and delivery tech company R2S, facilitating scalability and growth for e-commerce businesses in Egypt. This investment took place in the form of a “Pre-Series A” Round for R2S.
R2S enables e-commerce platforms with a full-fledged delivery and logistics offering and services including last mile delivery, parcel pick up and drop off points, payment collection solutions, returns and exchange management, inventory management and fulfillment as well as international shipping for Egyptian sellers and startups.
The fast growth of R2S is a testament to the solid experience and extensive industry expertise of its management and the commitment of its dedicated staff. The asset light business model adopted by R2S has allowed it to expand its geographical reach to nation-wide coverage with over 11 hubs and more still to come. R2S volume and revenue has also seen remarkable year over year growth, with latest figures showing 125% and 150% growth in volume and revenue respectively.
The innovative e-commerce and logistics company has also developed the R2S Plus platform which connects a shared economy network of existing retail stores with e-commerce sellers, giving customers greater control over their delivery experience by allowing them to choose the nearest location, most convenient time and payment method to receive their package.
Around 30% of online-ordered shipments fail at the first attempt, which is why R2S’ staggering successful package pick-up rate of over 93% has led to a customer repeat rate of 75%, well above industry averages. Participating retail stores benefit from the acquisition of new and repeat customers from the footfall traffic that visit their stores.
R2S is looking to expand its store network to reach 600 stores nationwide before November 2020.
With the GCC and Egypt accounting for 80% of the e-commerce market in MENA, and growing at a 30% annual rate of sales and 100% in terms of parcels shipped - more than twice as fast as the rest of MENA - Egypt has become one of the fastest growing markets in the MENA region, according to the latest e-commerce in MENA Report by Bain & Company and Google.
“We are excited to have A15 as a strategic investor due to their domain expertise, operational excellence and track record in the e-commerce space as they invested in, venture-built, grew and exited e-commerce companies before. Hence, they can bring a lot of value to the table, and will support our expansion to collaborate with more physical stores and e-commerce platforms across Egypt, empower more businesses, and provide convenience to a larger customer base,” Mahdi Al Olabi, CEO of R2S, commented.
“We believe that R2S is more than an e-commerce delivery partner. It is an enabler to online businesses in the ecosystem through its strong logistics experience, innovative tech and strategic partnerships and recently launched Pick-up and Drop-off (PUDO) network. In so, through this investment, A15 is working on unlocking the potential of the e-commerce ecosystem as weak delivery service has been one of the factors delaying the take-off of the sector in Egypt,” Fadi Antaki, CEO of A15, said.