Startups
‘Bosta’ shines on the delivery service scene in Egypt
Believing that on-time delivery is an essential part of the long supply chain of any business, the inspirational entrepreneur Mohammed Ezzat said that it is high time for his Bosta app to rock the market.
See Also ➤ Services Companies, a Story and Opportunity
What’s Bosta?
The word Bosta is an Arabic word for mailbox. Digging deep into the main purpose behind launching the app in Egypt, CEO Ezzat seems to have a lot to say.
Bosta service allows users (businesses and individuals) to send and receive packages less than 10 kilograms with a push of a button through a mobile app or a web app in a time that does not exceed two hours, user can also monitor their deliveries real time and even communicate with the courier all over the way.
Ezzat’s passion for enhancing the service of delivery came after his long experience in operation management where he faced many challenges.
“Many large companies are losing their clients’ trust because they have a bad delivery experience or clients experience delays,” Ezzat said, “noting that it is high time to use technology and shorten the period of delivery.”
In an interview with Digital Boom, Ezzat said that he decided to quit ex-booming start-up Lynks and kick-start a new application in the Egyptian market.
Ezzat was a former founder and Chief Operation Officer (COO) of the online shopping website Lynks which allows Egyptian customers to do shopping from any online store in the US.
Empowering Egyptian youth
Ezzat said that he aims to create new job opportunities in a country with unemployment rates exceeding 12 percent. “It is the main role of entrepreneurs to create jobs for the country and empower youth to do services via tech-enabled projects,” he added.
Bosta app is providing out-of-the-box solution to the delivery service as it delivers items via scooters that are mainly owned by the “stars” or the deliverymen.
The project does not own scooters
Ahmed Gaber, Bosta COO said that the start-up is relying on scooters to offer its service as many people are able to buy a brand new scooter at a cost of 15,000 Egyptian pounds, which is affordable to people from the middle class willing to start their own businesses.
The current team is currently operating to serve companies and businesses, Gaber said, adding that Bosta is now working with 100 companies.
What are the main challenges?
Asking founder Ezzat about the main challenges, he noted that his instant delivery app has rocked the market, which was long monopolized by large international companies worldwide.
Such companies, he added, have been taking the lion’s share of the market because of their long presence with no competitors.
Keen on putting an edge to the service, one of the “stars” or the deliverymen told Digital Boom that they are always using Google maps to help them avoid crowded areas in the capital and reach on time.
Alaa Osama, a 22-year-old student at the Faculty of Engineering, said that the app is a perfect opportunity to engage many young people who own scooters in the Bosta service.
He added that prices of scooters are affordable for many young people as they range from LE15, 000 to LE18,000. In addition, it is one of the perfect means that help overcome the traffic jam.
Osama noted that it is a perfect business model, because it allows users to pick the time they want to receive instant requests via the app.
The two main challenges Osama and his teammates are trying to overcome are:
- Lack of fuel on high ways
- The mobile phone running of battery
For founder Ezzat, the entrepreneurship is Egypt is booming. However, he said that there is a dire need to amend investment laws to encourage investors to pump their money into successful ideas.
Startups
Rising from Debt: Al Nashmiah Farms’ Battle to Empower Indebted Women
Al Nashmiah Farms, committed to aiding women burdened by debt and facing the threat of incarceration, offers a novel solution for them to earn their way to freedom. Under the leadership of Razan Harb, motivated by her family’s financial struggles, the farm has become a pivotal force in rescuing those ensnared in the debt trap, providing them with employment and a sense of purpose.
Harb, observing the plight of many women who took loans in hopes of improving their families’ fortunes, only to be overwhelmed by unfortunate circumstances, economic downturns, and oppressive taxes, has established a farm that serves as both a source of employment and a supplier of high-quality produce to major markets.
The farm’s operations include the provision of household essentials, emphasizing the importance of quality through methods such as nitrogen sterilization and the use of healthy packaging. Additionally, Harb has initiated work-from-home opportunities, enabling women to engage in the packing of vegetables and fruits for market and direct sales, thereby offering a sustainable model for economic independence and recovery from debt.
News
GoDaddy’s Global Markets VP Predicts Egypt’s E-commerce to Hit $9.88 Billion by 2028
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
Apps
Saudi Fintech ‘Lendo’ Raises $28M in Series B Funding
Lendo, a Saudi Arabia-based shariah-compliant debt crowdfunding marketplace, has raised SAR 105 million ($28 million) in Series B funding led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (“PIF”). The round saw participation from Shorooq Partners, AB Ventures and other investors.
Lendo is a Shariah-compliant, debt crowdfunding marketplace that helps pre-finance outstanding invoices for businesses in Saudi Arabia. The platform is a community of creditworthy borrowers and sophisticated investors looking for alternative investments. The platform is licensed by the Saudi Central Bank (SAMA). Lendo will use the funds to support its fast-growing customer base in Saudi Arabia which has grown 3X year-on-year, introduce more innovative financing products, and accelerate market expansion plans.
“With this funding round, we are going to expand into new markets, support new and current customers, and launch new Shariah-compliant products, all the while continuing to innovate the marketplace for digital lending. We are going to make financial services more accessible, affordable, and inclusive for everyone. I am excited to see what the future holds for our company,” said Osama Alraee, CEO, and co-founder of Lendo, who also disclosed its plans for an IPO within the next few years.
Alraee has also expressed his gratitude to SAMA (Saudi Central Bank), Fintech Saudi, MCIT, Misk, and Monshaat for their unwavering support, emphasizing the pivotal role they have played in advancing financial inclusivity and fostering innovation in partnership with Lendo to reshape the financial landscape. Their dedicated efforts in advancing financial inclusivity and fostering innovation have been invaluable to us. We greatly appreciate their partnership in our mission to transform the financial landscape
Commenting on the announcement, Sanabil Investments said: “Lendo is a leading fintech company that is transforming the financial services industry in their specialist area of Shariah-compliant digital lending for SMEs. The Lendo team, especially the founders, Osama and Mohamed, have achieved a significant amount in a relatively short period, and we are eager to join their journey of increasing access to flexible financial solutions in Saudi Arabia and the region at large.”
“The growing demand for alternative, agile, and accessible lending solutions presents a significant opportunity. At Lendo, we are well-positioned to lead the charge in promoting financial inclusion not only in Saudi Arabia but also beyond. By fueling SME growth, we aim to contribute to the realization of Saudi Arabia’s Vision 2030 economic goals and to create a ripple effect of opportunity throughout the MENA region,” said Mohamed Jawabri, COO, and co-Founder of Lendo.
Lendo previously raised a SAR 27 million Series A funding round ($7.2 million) in 2021 led by Derayah Ventures with participation from Seedra Ventures and other investors, bringing the fintech’s total funding to SAR 132 million ($35.2 million).
Since the inception of Dec 2019, Saudi fintech Lendo has processed more than 2,500 financing transactions on its platform, providing over SAR 1 billion ($300 million) in financing to SMEs and generating SAR 140 million ($37 million) returns for investors.
The Small and Medium Enterprise financing landscape in the Middle East and North Africa (MENA) presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually. According to the International Finance Corporation (IFC), the SME financing gap is estimated at SAR 19.5 trillion ($5.2 trillion) every year in developing countries.
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, which aligns with the Saudi Vision 2030 to significantly expand SME lending from 4% in 2018 to 20% by 2030.
The total value of debt crowdfunding in Saudi Arabia surged from 1.4 million SAR in 2019 to SAR 771 million in 2022, marking a remarkable 430% growth, according to SAMA’s annual fintech report 2022.
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