With AI transforming last-mile delivery, Roboost is positioning itself as a category-defining player in a space still riddled with inefficiencies. We spoke with Hossam Shafick, Principal at Silicon Badia, to unpack the firm’s conviction in Roboost and the broader market opportunity.

Spotting an Opportunity in Last-Mile Delivery

When Hossam met Mohamed Gessraha, CEO & Co-Founder, what really struck him was that Mohamed’s drive to solve a problem came from a personal pain point.

As a second-generation pharmacy owner, Mohamed was determined to deliver better quality service. Running a chain of pharmacies in Tanta, a small town in Egypt, he couldn’t understand why deliveries took very long. Determined to solve the problem, he built a robot capable of dispatching products in under 30 seconds—a remarkable feat. Yet, despite this innovation, deliveries still took 45 minutes to reach their destination.

No one could pinpoint exactly where the bottleneck was. Was it the delivery agent? The route? The traffic? Timing? The bottleneck wasn’t in dispatching but somewhere else in the delivery process. Refusing to accept inefficiency as the norm, Mohamed channelled his frustration into creating Roboost, a SaaS solution designed to identify, and automatically tackle the root causes of delivery delays and inefficiencies and transform last-mile logistics.

Roboost Explained

As Hossam explains, Roboost automates everything from preparation and dispatching to routing delivery agents based on real-time data, such as traffic, delivery volume, agents available, and customer scores. The system automatically determines which agent should handle which and how many deliveries, prioritizing orders based on factors like basket size, customer complaint history, and order type. Just like it should, the system prioritizes preparation of a $1000 order over a $10 one.

Similarly, if a customer has previously lodged complaints in the past, their order could be prioritized to enhance their overall experience.

But the platform does not only improve dispatch efficiency, in fact, it also functions as an automated incentive scheme for delivery agents. Since the software tracks and manages agents’ behavior, It is able to impose penalties on any actions taken outside the expected scope, with penalties contributing to a fund that is distributed among high-performing agents at the end of the week, promoting a healthy, objective merit-based system.

The Story & Conviction Behind the Investment

As Hossam first started digging into Roboost in December 2022, the company was in its early stages, serving small pharmacies and restaurants in Egypt. Hossam was particularly impressed by the validation the company had already secured from smaller clients. One such customer was a mom-and-pop koshary restaurant—a small business with tight margins and low order values. Despite this, they subscribed to Roboost’s service, which was a powerful endorsement. It was rare for businesses like this to pay for technology, making their commitment to Roboost a clear sign that the platform offered genuine value.

These smaller wins gave Hossam confidence that Roboost had found signs of product-market fit. But he still wanted to see validation from larger brands to truly believe in the company's scaling potential. That’s when Mohamed mentioned he was having a sit-down with McDonald’s the following week.

Just two weeks later, Mohamed called Hossam with incredible news—Roboost had secured an annual contract with McDonald’s covering 147 branches across Egypt. This was a game-changer. Hossam was astounded by the speed of the sales cycle, especially since it was a dollar-denominated commitment. it is rare to see a startup close a contract of that size, and the fact that Roboost did it in just two weeks made it clear that the company had massive potential.

With both the strong validation from smaller clients, the McDonald’s deal in hand and the hunger witnessed from meeting the founder, Hossam was convinced it is time to engage the rest of the team. He invited Mohamed and his team to pitch in front of the rest of Silicon Badia, and the deal was sealed. Silicon Badia then led Roboost’s $3 million round, with participation from RZM Investment, Flat6Labs, and Saudi angel Investors.

Using Roboost To Compete

Businesses are turning to Roboost to stay competitive by improving their delivery capabilities. Indeed, Roboost’s solution allows companies across various sectors to streamline the logistics of getting their products to customers quickly and reliably, ultimately giving them a strong edge over their rivals. For instance, in pharmacies, where the products are often commoditised and the competition is fierce, quick and reliable delivery can make a significant difference in customer loyalty.

The Opportunity Beyond Egypt

Roboost has already demonstrated product-market fit. With 90% gross margins and very little paid marketing, the company has generated significant leads and closed deals effectively. For example, a test campaign on Snapchat in September 2024 led to $600k in qualified annual recurring revenue (ARR), closing $60k of that in the same quarter with a mere $7k marketing spend. This ability to generate leads and convert them into paying customers showcases Roboost’s potential to address market hunger efficiently, without requiring heavy spending.

Now, with the groundwork laid and a proven strategy, Roboost is turning its attention to expansion beyond Egypt. Egypt, known for its traffic congestion and location issues—where even Google Maps struggles to pinpoint addresses—has been a challenging market for many. But Roboost has managed to solve logistical challenges in the country, demonstrating that its solution can overcome significant infrastructure barriers. If they can succeed in Egypt, then naturally, Roboost is well-positioned to expand to other countries in the region with similar infrastructure hurdles. Furthermore, as Hossam notes, “If Roboost can solve a problem this massive in Cairo, then scaling to markets like Saudi Arabia and the UAE, where infrastructure is better, becomes a natural next step." The company is well-positioned to replicate its success in these markets, offering a scalable solution in regions with less daunting logistical challenges. Expansion marks a logical and promising next phase for Roboost.

Roboost’s Social Impact

Roboost also has a significant social impact, particularly in terms of its talent strategy. The company's CTO and co-founder, Mohamed Ali Sadek, who holds a PhD in delivery management systems, teaches in the institute of technology in Upper Egypt.

Leveraging his position as a professor at the tech institute, he recruits top-performing students, often young women, from his classes. These individuals are given well-paid remote roles, allowing them to work for a cutting-edge regional tech company while staying in their communities. This approach supports the local economy and empowers underrepresented groups, providing long-term job stability and career growth in a region with limited employment opportunities. By nurturing local talent in this way, Roboost creates a sustainable, impactful model that fosters both innovation and social progress.

Fast Forward 5 Years…?

Roboost's potential goes beyond logistics, opening up multiple growth avenues. One key area is fintech. With delivery agents often lacking financial services, Roboost is partnering with platforms like Fawry to bank the underbanked, offering extensive fintech solutions (banking services, insurance, etc.) in a market that is usually harder for fintechs to tap into. 

As the company scales, Roboost also has the potential to become an aggregator. "At face value, Roboost could be an aggregator play, a data machine, or even a fintech powerhouse," says Hossam Shafick. 

The opportunities are truly endless.

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