$26 M Series A funding secured by Egyptian grocery delivery startup Breadfast
Breadfast, an Egyptian food delivery service, has acquired $26 million in Series A investment to grow into new cities, develop its technology, and enter Sub-Saharan African markets.
Breadfast, founded in 2017 by Mostafa Amin, Muhammed Habib, and Abdallah Nofal, delivers over 2,500 grocery products to consumers’ doorsteps every morning using a smartphone app.
The firm owns the full value chain, including bread production, transportation and distribution, technology, and customer service, and ships tens of thousands of orders every month.
JAM Fund (headed by Tinder co-founder Justin Mateen), YC Continuity Fund, Shorooq Partners, 4DX Ventures, and Flexport were among the investors in the startup’s US $26 million Series A round, which was co-led by Vostok New Ventures and Endure Capital. It takes Breadfast’s total investment to over US $33 million to date.
Breadfast will use the fresh funds to accelerate its expansion into eight new cities throughout Egypt, scale the technology underpinning its ‘pocket supermarket’ app, and expand its workforce as it prepares to extend its grocery delivery service beyond Sub-Saharan Africa.
Breadfast delivers groceries and other home needs on a schedule or on-demand via its iOS and Android app. Deliveries are now available for 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.
“We started out baking and delivering fresh bread, and today we are able to give Egyptian’s 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.
“We are delighted to be joined by a number of vastly-experienced and strategic investors, whose expertise will not only play a vital role ahead of our expansion across Africa but also in our future ambitions outside of the continent.”
Breadfast was shaping how customers in emerging nations planned and carried out their grocery shopping, according to Mateen, the CEO of JAM Fund.
“The Breadfast team has managed to build 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 q-commerce market. I am excited about supporting this team in their future plans,” he said.
VNV Global’s investment manager, Björn 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.
