Saudi Arabia-based delivery and logistics company DIGGIPACKS has acquired Egypt-based e-commerce solutions provider FWRUN because the company hopes to expand its influence in the Egyptian market.
In April, DIGGIPACKS raised USD 400,000 in pre-financing from YOUXEL Ventures, OQAL, and other Saudi angel investors.
DIGGIPACKS was founded by Hassan Jabarti in 2020 and brings together last mile and fulfillment operations, enabling retailers to easily move their packages.
In the era of COVID-19, the growth of the e-commerce market has become a major challenge for transportation and logistics companies. These companies require growth rates to be consistent with the overall growth of the e-commerce market in the Arab region. Globalization.
Therefore, all start-up companies must find potential partners and form alliances so that they can grow and generate more sales while maintaining profitability.
In 2020, Riyadh-based Diggipacks launched its e-commerce and retail services in Saudi Arabia. The company provides warehousing (middle mile) and freight (last mile) services through strategic partners in these two areas.
Since the company adopts the 4PL principle, this means that the company does not own any assets, but provides high-quality technology to connect merchants with a large number of 3pl warehouses all over the kingdom
In addition to being associated with more than 30 shipping companies operating within the Kingdom, it also provides endless options for merchants to maintain a consistent level of service in terms of efficiency and quality.
Hassan Al Jabarti, CEO of Diggipacks, stated that he has more than 20 years of experience in logistics and technology.
In addition to the founding partner Amin al-Atrash, he has worked in major companies in the logistics and transportation field.
These accumulated experiences are reflected in the company’s first and second years of growth.
DIGGIPACKS can provide services to merchants with the capacity of 5,000 shipments per day in an area of more than 15,000 square meters.
A few months before the launch of Diggipacks, the FwRun service started in Cairo in the last quarter of 2019 as a fulfillment center that provides storage and processing services (mid-mile).
In addition, successfully attracted many merchants interested in the service as some international brands due to the strong market demand for these services.
The founding team has extensive experience in retail, digital transformation, and e-commerce.
Given that co-founder and CEO Khaled El-Nimer has extensive experience in the retail market and digital transformation, his partner Ahmed El Maghraby is the commercial director responsible for the company’s strategic partnerships and business development.
Khaled is optimistic about the expansion of the two companies in Egypt and Saudi Arabia because the alliance will be able to provide high-quality technology in the Egyptian market, in addition to increasing cross-border trade opportunities between the two companies. This helps increase growth opportunities for SMEs.
Hassan Al-Jabarti and Khaled Al-Nimr pointed out the impact of some of the acquisition transactions between Diggipacks and FwRun. DIGGIPACKS acquired a portion of FwRun’s total shares (undisclosed value).
In exchange for providing technical support and expansion in the Kingdom, the premise is that Diggipacks expands in the Egyptian market. Through her, cooperated FwRun.
Obviously, both start-up companies need to actively expand, which will require a new round of investment by both parties.