KSA-based DIGGIPACKS acquires shares in FWRUN
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The Riyadh-based storage and Last-Mile delivery startup Diggipacks has just acquired an undisclosed amount of shares in its Egyptian counterpart, FWRUN. This acquisition agreement comes in an effort to consolidate both companies’ expertise, resources, and technology supporting Diggipacks expansion to the Egyptian market and FWRUN to the Kingdom.
Launched in 2020, Riyadh-based Diggipacks has built an asset-light operation to provide Middle-Mile and Last-Mile delivery services for counterparts across KSA. A few months before the launch of Diggipacks, FwRun launched in Cairo in the last quarter of 2019 as a Fulfillment center providing storage facilities and Handling services (Middle Mile); gaining traction and growing steadily.
In Egypt, every fourth dollar invested in H1 2021 was raised by a Delivery and Logistics startup (D&L), driven by a 40% growth in D&L deals YoY as recorded in our H1 2021 EVM Delivery & Logistics Venture Investment Report. The $42M invested in the D&L sector over H1 2021 accounted for 26% of all capital raised in the country, almost 10x the share D&L startups raised ($3M) in Saudi Arabia. However, both KSA and Egypt observed growth in the volume of transactions in H1 2021 YoY, growing by 18% and 10% respectively.
The accumulated experiences of Diggipacks CEO Hasan Jabarati, with 20+ years of experience in logistics and technology, and Co-Founder Amin Al-Atrash, who worked for major Transport & Logistics players, drive the unprecedented growth of the company. Where Diggipacks can serve merchants with a capacity of 5,000 shipments per day on an area of more than 15,000 square meters. Through this strategic partnership, Diggipack aims to expand its operations horizontally and access the Egyptian market supported by FWRUN.
Co-Founders of FWRUN, Khaled El-Nimr, and Ahmed Maghraby, with cumulative experience in retail, digital transformation, and E-commerce, expressed their optimism regarding the expansion of the two companies in Egypt and Saudi Arabia. This power partnership 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 SMEs across the two geographies.
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