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Egypt’s tech-enabled logistics services market for e-commerce is projected to grow from $1.82 billion in 2024 to $17.28 billion by 2035, according to the 2026 Annual Entrepreneurship Sector Report issued by Entlaq, with a compound annual growth rate of 22.7% driven by expanding e-commerce and rising corporate adoption of digital shipping, delivery and supply-chain solutions.

Tech-Enabled Logistics Outpaces the Broader Market

The report forecasts Egypt’s overall logistics market to expand from $11.48 billion in 2026 to $14.66 billion by 2031, representing a 5.04% compound annual growth rate. The technology- and e-commerce-driven segment, however, is expected to grow at a significantly faster pace.

Cairo is home to 57 logistics technology startups, 19 of which have secured funding, while only four have reached Series A or later funding stages. Nationwide, the number of startups operating in the sector exceeds 70.

Cumulative funding raised by Cairo-based logistics technology startups reached $97.1 million through May 2026. Funding, however, fell sharply after peaking at $54.6 million in 2021, declining to around $15 million in 2023 and just $100,000 in 2025.

The report cautioned that the funding figures focus on Cairo based on coverage by the Tracxn database and therefore may not represent the full scale of funding nationwide.

From Growth Funding to Exits and Consolidation

The report said Egypt’s logistics technology ecosystem has moved from a growth-funding phase toward a stage increasingly defined by exits and consolidation, highlighting Trella and Bosta as two key examples.

Trella, a digital trucking marketplace, has raised $34.2 million and expanded into the UAE. Bosta, meanwhile, completed an exit in May 2026 that generated an internal rate of return of 75%.

The ecosystem also includes ShipBlu, backed by Y Combinator, which uses artificial intelligence and machine learning to optimize delivery routes. Other players include Yalla Fel Sekka, which raised $7 million in a Series A round, fulfillment company Flextock and Fincart, which provides embedded financing solutions for brands.

The report divides the sector into five main categories: delivery, digital freight marketplaces, e-commerce fulfillment, supply-chain coordination and business-to-business distribution.

Digital Infrastructure and Addressing Remain Key Obstacles

Weak digital infrastructure remains one of the main barriers to the expansion of logistics technology companies, according to the report. Challenges include the absence of a unified national addressing system and rural delivery costs that are 30% to 40% higher than in urban areas.

Cash on delivery also remains widely used, accounting for about 34.37% of payment value despite the presence of 46.3 million electronic wallet accounts.

The report proposed piloting a national digital addressing standard in underserved governorates and linking it to licensed delivery platforms. Such a system could help logistics technology companies reduce last-mile costs and expand beyond major urban centers.

The regulatory framework is also becoming more technology-oriented through the Customs Window, the Advance Cargo Information system (ACI), electronic payment service rules and the Personal Data Protection Law.

The report concluded that the future of Egypt’s logistics sector will increasingly depend on digital transformation rather than traditional infrastructure expansion alone. Logistics technology companies have significant opportunities to benefit from rapid e-commerce growth, despite continuing challenges related to funding, addressing and last-mile infrastructure.