$4.5 M Pre-Series A funding raised by SA food e-commerce startup Yebo Fresh
Yebo Fresh, a South African e-commerce business that delivers fresh goods and meals to townships, has secured a ZAR78 million (US $4.5 million) pre-Series A equity investment in addition to a Jobs Fund grant.
Yebo Fresh is an online grocery delivery service for township communities that was introduced in 2018 and is based in the garage of entrepreneur Jessica Boonstra’s house. It serves regions that are often underserved by most formal merchants.
Through partnerships with a quickly expanding network of spaza stores, prepared food outlets, and other township businesses, the firm currently provides delivery to more than 25 townships in the greater Cape Town and Johannesburg areas.
Yebo Fresh uses a dark store-based fulfillment mechanism to deliver orders within 24 hours. Orders may be submitted via WhatsApp or through the team of field sales agents on Yebo Fresh. Additionally, the firm provides a buy-now-pay-later alternative.
While rapid commerce delivery services like Checkers Sixty60 and PicknPay ASAP are well-suited to the upper market in South Africa, Yebo Fresh asserts that it is the only competitor that focuses solely on the township market.
Yebo Fresh has raised further money after raising a Series A round in 2020, as well as bridge funding rounds in 2021 and 2022 from both old and new investors, including AckerX, the investment vehicle of well-known fast-fashion retailer Ackermans. The firm will be able to develop further, considerably improve its physical and system infrastructure, and recruit new people thanks to its ZAR78 million (US $4.5 million) pre-Series A financing.
“The township market is growing rapidly, and we are proud to be at the forefront of its digital revolution,” said Boonstra, Yebo Fresh’s CEO. “This funding will allow us to grow into new product categories and market segments, expand our systems and warehousing infrastructure, and explore further partnership opportunities with strategic players in the market. It will also assist us in gathering even more data insights, further strengthening our unique position in this massive market segment.”
In addition to Harvest, the local investment fund of Endeavor, and impact investor Elea Foundation from Switzerland, Enza Capital led the round. E4E Africa also made new investments.
Enza Capital managing partner John Lazar expressed his “thrilledness” to support the “amazing” Yebo Fresh team.
“They are fundamentally changing the way essential goods are provided to the township market, an underserved but vibrant and growing segment of the South African economy,” he said.
To help thousands of South African-owned businesses in townships expand and stay competitive, the Jobs Fund award will be used to offer technology, mentoring, and physical resources. In order to enhance operations, cut expenses, and boost sales, small company owners may benefit from free training, tools, and investments in digital infrastructure.
