Egyptian Delivery Startup Breadfast Secures $26 Million Funding
Breadfast gets ready for expansion into eight new cities through the $26 million Series A funding round.
Egyptian delivery startup Breadfast has acquired $26 million in Series A funding round to grow into new cities, scale its technology, and enter Sub-Saharan African markets. The food and grocery delivery sector is worth in Africa and the Middle East estimated to approximately $1 trillion. Egypt, with its young and rising population, is making a significant market in both areas.
Investors are supporting their picks in order to take a substantial slice of the emerging but rapidly developing sector. To that aim, the Egyptian delivery startup Breadfast, an online grocery delivery service that aspires to be a regional leader in the food chain industry, has acquired funding from distinguished groups of investors.
Participants in the Series A round include JAM Fund – headed by Tinder co-founder Justin Mateen, YC Continuity Fund, a big undisclosed Saudi-based fund, Shorooq Partners, 4DX Ventures, and logistics giant Flexport, as well as lead investors Vostok New Ventures and Endure Capital.
The Egyptian delivery startup Breadfast, will use the fresh funds to expand into eight new cities across Egypt, scale the technology underlying its “pocket supermarket” app, and expand its team as it prepares to expand its grocery delivery service across Sub-Saharan Africa.
Through its iOS and Android-enabled app, Breadfast delivers groceries and other household needs on-demand. Deliveries are available under 60 minutes, but the business plans to reduce this to 20 minutes by using a portion of the additional money to expand its dark shop network.
How Breadfast Launched in the Egypt’s Marketplace
The Egyptian delivery startup Breadfast, launched in 2017 by Mostafa Amin, Muhammed Habib, and Abdallah Nofal. The founders created the concept for an on-demand bakery service that provides consumers with freshly baked bread and pastries. Since then, the company has grown into a full-fledged online grocery store with over 2,500 stock-keeping units.
The founders began with the baking delivery of bread according to CEO Amin, because it was the “most basic dietary unit in an Egyptian household.” Breadfast Tomorrow was the company’s first model, with clients receiving bread the next morning after placing their orders.
The $26 million investment comes after the Breadfast pre-Series A funding of $2 million in the last two years. The Egyptian on-demand delivery startup has received more than $30 million in total funding.
The Prospects of the Egyptian Delivery Startup Breadfast
The Egyptian delivery startup Breadfast, delivers over 2,500 supermarket items to consumers’ doorsteps every morning using a mobile app. The company owns the full value chain, including bread production, transportation and distribution, technology, and customer service, and ships tens of thousands of orders per month.
“We started out baking and delivering fresh bread, and today we are able to give Egyptians access to thousands of items of their basic supermarket supplies at the click of a button. Our mission is to change how people consume their daily essentials in Africa and the Middle East, and through our dynamic technology and deep understanding of the end-to-end supply chain process in the region, we are growing a simple idea into a product we believe can benefit millions of people across the MENA and Sub-Saharan regions,” said Mostafa Amin, co-founder and chief executive officer (CEO) at Breadfast.
Breadfast is dictating how customers in emerging nations will plan and carry out their grocery shopping according to JAM Fund’s head, Manteen.
“The Breadfast team has built a complex operation that offers a seamless experience for customers. Supported by a massive demographic and favorable operating expenses in emerging markets, Breadfast is poised to become a leader in the grocery E-commerce market. I am excited about supporting this team in their future plans,” he said.
VNV Global’s investment manager, Bjorn von Sivers, expressed his enthusiasm about Breadfast’s prospects.
“Over the past few years, Breadfast fueled its growth by offering something that’s highly scarce in emerging markets; an exceptionally good customer experience and solid operational excellence. We see Breadfast becoming one of the most successful companies to come out of Africa and the Middle East,” he said.
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